Financial Accounting theory and analysis by Richard Schroeder, Myrtle Clark and Jack Cathey Responses should apply the concepts from the chapters chap 4 and 5 and your individual thoughts and understanding.
Various research methodologies are available with which to study the development of accounting theory.
Discuss the deductive, inductive, and pragmatic research methods. Include in your discussion examples of accounting research that used each method.
Agency theory provides an explanation for the development of accounting theory.
Discuss agency theory, including its basic assumptions, agency relationships, why the political process affects agency relationships, and why it does or does not explain accounting theory.
In 2013 Airbus announced a contract to deliver 50 A380 airplanes to Emirates for $20 Million to be delivered between 2016 and 2018.
Outline the five- step revenue recognition process for this transaction.
The concept of conservatism has been influential in the development of accounting theory and practice. A major effect of conservatism is that accountants tend to recognize losses, but not gains. For example, when the value of an asset is impaired, it is written down to fair value and an unrealized loss is recognized in the income statement. However, when the asset's value appreciates, its value is not written up to fair value. (An exception is current accounting for investments in securities having readily determinable fair values.) Stated differently, accountants tend to recognize holding losses, but not holding gains.
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