$20 Bonus + 25% OFF
$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!
Add File

Error goes here

HA 3011 Advanced Financial Accounting

tag 0 Download10 Pages / 2,377 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT

Question:

In an article entitled ‘Unwieldy rules useless for investors’ that appeared in the Australian Financial Review on 6 February 2012 (by Agnes King), the following extract appeared. Read the extract and then answer the question that follows. 

Millions of dollars have been spent adopting international financial reporting standards to help investors make like-for-like comparisons between companies in global capital markets. But CFOs say they are useless and have driven financial disclosures to unmanageable levels. The criticism comes as the United States, the world’s largest capital market, decides whether to retire its domestic accounting standard (US GAAP) and adopt IFRS. 

“In seven years I never got one question from fund managers or investment analysts about IFRS adjustments,” former AXA head of finance Geoff Roberts said. “Investors...rely on investor reports and management briefings to understand companies’ numbers.” 

If analysts did delve into IFRS accounts, they would most probably misinterpret them, according to Wesfarmers finance director Terry Bowen. “Once you get into the notes you have to be technically trained. If you’re not, lot of it could be misleading,” Mr Bowen said.

Commonwealth Bank chief financial officer David Craig said IFRS numbers were disregarded by investors because they could actually obscure an institution’s true position. 

Required: 

You are required to explain which qualitative characteristics of financial reporting, as per the conceptual framework, do not, in the opinion of the above quoted individuals, appear to be satisfied by current reporting practices pursuant to IFRS. Also, you are required to consider whether the views are consistent with the view that corporate financial reports satisfy the central objective of financial reporting as identified in the Conceptual Framework.  

Assessment Task Part B           (6 Marks)

In 2006 the Australian Government established an inquiry into corporate social responsibilities with the aim of deciding whether the Corporations Act should be amended so as to specifically include particular social and environmental responsibilities within the Act. At the completion of the inquiry it was decided that no specific regulations would be added to the legislation, and that instead, ‘market forces’ would be relied upon to encourage companies to do the ‘right thing’ (that is, the view was expressed that if companies did not look after the environment, or did not act in a socially responsible manner, then people would not want to consume the organisations’ products, and people would not want to invest in the organisation, work for them, and so forth. Because companies were aware of such market forces they would do the ‘right thing’ even in the absence of legislation).

Required:

You are required to explain the decision of the government that no specific regulation be introduced from the perspective of:

(a)Public Interest Theory

(b)Capture Theory

(c)Economic Interest Group Theory of regulation 

Assessment Task Part C           (4 Marks)

The US Financial Accounting Standards Board does not allow revaluation of non-current assets to fair value, but it does make it compulsory to account for the impairment costs associated with non-current assets as per FASB Statement No. 144 Accounting for the Impairment or Disposal of Long-Lived Assets.

Required:

What implications do you think these rules have for the relevance and representational faithfulness of US corporate financial statements? 

Assessment Task Part D          (4 Marks)

Many organisations elect not to measure their property, plant and equipment at fair value, but rather, prefer to use the ‘cost model’. This will provide lower total assets and lower measures, such as net asset backing per share. 

Required

You are required to answer the following questions:

(a)What might motivate directors not to revalue the property, plant and equipment? 

(b)What are some of the effects the decision not to revalue might have on the firm’s financial statements? 

(c)Would the decision not to revalue adversely affect the wealth of the shareholders?

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2020). Advanced Financial Accounting. Retrieved from https://myassignmenthelp.com/free-samples/ha-3011-advanced-financial-accounting/the-economic-markets.html.

My Assignment Help (2020) Advanced Financial Accounting [Online]. Available from: https://myassignmenthelp.com/free-samples/ha-3011-advanced-financial-accounting/the-economic-markets.html
[Accessed 27 July 2021].

My Assignment Help. 'Advanced Financial Accounting' (My Assignment Help, 2020) <https://myassignmenthelp.com/free-samples/ha-3011-advanced-financial-accounting/the-economic-markets.html> accessed 27 July 2021.

My Assignment Help. Advanced Financial Accounting [Internet]. My Assignment Help. 2020 [cited 27 July 2021]. Available from: https://myassignmenthelp.com/free-samples/ha-3011-advanced-financial-accounting/the-economic-markets.html.


Talk to our responsive customer support when you are inclined to opt for the assignment help service from MyAssignmethelp.com. Our customer support executives are available to answer your queries 24x7. Additionally, you can reach out to them through multiple channels like email or phone. In fact, you talk to our executives through the live chat facility on our website. Our skilled customer relations executives will walk you through all our writing service and features.

Latest Accounting Samples

ACF5955 Management Accounting

Download : 0 | Pages : 12

Answers 1. (i) The competitive strategy refers to the long-term plan that a company develops in order to gain a competitive advantage over its rivals. The four types of competitive strategy that are most important are cost leadership strategy, differentiation strategy, low cost focus strategy and differentiation focus strategy. The business by focusing one or more of these strategies tries to achieve be competitive advantage. A business is said ...

Read More arrow Tags: Australia Coburg Accounting ACF5955 Management Accounting University of Queensland MBA 

ASB-4424 Islamic Banking

Download : 0 | Pages : 2

Answer: Discussion Islamic central banks are different from other central banks as conducting monetary polices is restricted to interest free monetary instruments. The Islamic central bank and the banking sector operate in compliance with Sharia laws (Islamic laws). The Islamic laws prohibits usury and investment on businesses considered contrary to the Islamic teachings (Hanif, 2014). The objectives of Islamic monetary policies are to stabil...

Read More arrow Tags: United Kingdom London Management Humanities University of London 

ACC706 Accounting Theory And Issues

Download : 0 | Pages : 7

Answer: Introduction This paper has been constructed with the help of four articles and it is seen that each of the four articles are related to the functioning of an organization. The paper is being prepared by concentrating on the article that is based on the explanation of corporate governance and how it improves the operations and the relationship among the stakeholders associated with the organization. The paper tries to relate with the ...

Read More arrow Tags: Australia Sydney Management Business Agreements University of Sydney MBA 

ACC700 Principles Of Accounting

Download : 0 | Pages : 14

Answer: Introduction In the present time, the business environment is considered more complicated, challenging and fast growing due to high competition and up-gradation in the technologies. Both competition & technological improvements are the important and significant factors that are affecting the current and future of accounting profession. For example, due to the introduction of new/innovative and dynamic technologies/tools/methods, t...

Read More arrow Tags: Australia The Ponds Accounting Principles of Accounting University of Queensland MBA 

VBE1000 Accounting For Decision Making

Download : 0 | Pages : 5

Answer: The company JB Hi-Fi has major business and operations in countries of New Zealand and Australia. It acts as a vendor and merchant of the goods of customer’s value like video games, CD, s, DVD’s and mobile phones. It is among the most leading and successful business organizations in the industry and also among the fastest developer in the overall market. The report considers and takes into account the measuring of the valu...

Read More arrow Tags: Australia Moreland Economics Share Market University of Sydney MBA 
Next

Still in Two Minds? The Proof is in Numbers!

33845 Genuine Reviews With a Rating of 4.9/5.

student rating student rating student rating student rating student rating
19 Jul 2021

Mechanical Engineering

Assignment: 8 Pages, Deadline: 8 days

Passed my subject because of you. Thank you........................................................................

flag User ID: 2***76 Sydney, Australia

student rating student rating student rating student rating student rating
19 Jul 2021

Healthcare

Essay: 1 Page, Deadline: 17 days

Instructors comments on marking :



The depression rate has been increased by 31% among teenagers in America as a consequence of the excessive us ...

flag User ID: 6***41 Campbell River, Canada

student rating student rating student rating student rating student rating
19 Jul 2021

English

Assignment: 0 Pages, Deadline: 4 days

Grate job on my assignment. I got a 100 on it. thank you. I have two questions? 1)Whats The distance from Clarksville,TN to Dayton, Ohio? What's the ...

flag User ID: 7***74 United States

student rating student rating student rating student rating student rating
19 Jul 2021

Assignment

Essay: 5 Pages, Deadline: 6 days

Great job by an incredible organization that truly goes above and beyond to assist in any matter. I truly thank you again for your help.

flag User ID: 5***89 Hillsborough, United States

student rating student rating student rating student rating student rating
19 Jul 2021

Networking

Programming: 4 Pages, Deadline: 30 days

Very Good Team and they attend to you whenever u need them and make all the changes required as soon as possible.

flag User ID: 6***7 Brisbane, Australia

student rating student rating student rating student rating student rating
19 Jul 2021

It Write Up

Assignment: 4 Pages, Deadline: 16 days

This was short assignment but i was satisfied with the work. I got good grades and passed the assignment. The assignment was overall good. I ordered i ...

flag User ID: 6***34 Canada

student rating student rating student rating student rating student rating
18 Jul 2021

Healthcare

Essay: 4 Pages, Deadline: 6 days

the revised version of the assignment was ok, based on the feedback for all the parts.

flag User ID: 5***77 Australia

student rating student rating student rating student rating student rating
18 Jul 2021

Nursing

Home Work: 4 Pages, Deadline: 4 days

My assignment always done on time sometime before the given time. MY ASSIGNMENT team is very responsive.

flag User ID: 4***34 United States

student rating student rating student rating student rating student rating
18 Jul 2021

Nursing

Assignment: 4.8 Pages, Deadline: 5 days

My Assignment was done very good. Good work and it was delivered on time. Very responsive.

flag User ID: 4***34 United States

student rating student rating student rating student rating student rating
18 Jul 2021

HRM

Thesis: 6 Pages, Deadline: 9 days

YOU WORKED HARD ON THIS ASSIGNMENT AND DID EXACTLY WHAT WAS ASKED. THANKS, AND I CAN'T WAIT FOR YOU TO DO WELL ON THE NEXT WORK.

flag User ID: 4***64 United States

student rating student rating student rating student rating student rating
19 Jul 2021

Mechanical Engineering

Assignment: 8 Pages, Deadline: 8 days

Passed my subject because of you. Thank you........................................................................

flag User ID: 2***76 Sydney, Australia

student rating student rating student rating student rating student rating
19 Jul 2021

Healthcare

Essay: 1 Page, Deadline: 17 days

Instructors comments on marking :



The depression rate has been increased by 31% among teenagers in America as a consequence of the excessive us ...

flag User ID: 6***41 Campbell River, Canada

student rating student rating student rating student rating student rating
19 Jul 2021

English

Assignment: 0 Pages, Deadline: 4 days

Grate job on my assignment. I got a 100 on it. thank you. I have two questions? 1)Whats The distance from Clarksville,TN to Dayton, Ohio? What's the ...

flag User ID: 7***74 United States

student rating student rating student rating student rating student rating
19 Jul 2021

Assignment

Essay: 5 Pages, Deadline: 6 days

Great job by an incredible organization that truly goes above and beyond to assist in any matter. I truly thank you again for your help.

flag User ID: 5***89 Hillsborough, United States

student rating student rating student rating student rating student rating
19 Jul 2021

Networking

Programming: 4 Pages, Deadline: 30 days

Very Good Team and they attend to you whenever u need them and make all the changes required as soon as possible.

flag User ID: 6***7 Brisbane, Australia

student rating student rating student rating student rating student rating
19 Jul 2021

It Write Up

Assignment: 4 Pages, Deadline: 16 days

This was short assignment but i was satisfied with the work. I got good grades and passed the assignment. The assignment was overall good. I ordered i ...

flag User ID: 6***34 Canada

student rating student rating student rating student rating student rating
18 Jul 2021

Healthcare

Essay: 4 Pages, Deadline: 6 days

the revised version of the assignment was ok, based on the feedback for all the parts.

flag User ID: 5***77 Australia

student rating student rating student rating student rating student rating
18 Jul 2021

Nursing

Home Work: 4 Pages, Deadline: 4 days

My assignment always done on time sometime before the given time. MY ASSIGNMENT team is very responsive.

flag User ID: 4***34 United States

student rating student rating student rating student rating student rating
18 Jul 2021

Nursing

Assignment: 4.8 Pages, Deadline: 5 days

My Assignment was done very good. Good work and it was delivered on time. Very responsive.

flag User ID: 4***34 United States

student rating student rating student rating student rating student rating
18 Jul 2021

HRM

Thesis: 6 Pages, Deadline: 9 days

YOU WORKED HARD ON THIS ASSIGNMENT AND DID EXACTLY WHAT WAS ASKED. THANKS, AND I CAN'T WAIT FOR YOU TO DO WELL ON THE NEXT WORK.

flag User ID: 4***64 United States

Order on the go!

Say hello to our new app

callback request mobile
Have any Query?