Contrast normative theories with positive accounting

Assignment Help Accounting Basics
Reference no: EM131500019

Assignment

Part A (1000 words)

Watts and Zimmerman's ‘The Demand and Supply of Accounting Theories: The Market for Excuses' suggested the ‘normative' project of accounting academics and other social critics of corporate accounting practice to be invalid; that there are no objective grounds in accounting theory for judging accounting practice as ‘good' or ‘bad'; all such judgements are mere excuses or apologies for advancing the interests of particular social constituencies, couched in a language of academic impartiality and objectivity.

Tony Tinker [Policing Accounting Knowledge: the market for excuses affair] has suggested that the positive accounting theory proposed by Watts and Zimmerman is being replaced by a new paradigm: one that emphasises usefulness, vocational training and practical application.

Contrast ‘normative' theories with ‘positive accounting' theory. Have we moved to a new paradigm and if so what is it.

Part B (1000)

Consider the concept of historic cost and discuss the following questions

- The historical cost model and its application
- The reasons for the dominance of the historical cost model, and the arguments against the model
- Historical cost valuation issues, and the equity perspective adopted
- Criticisms of historical cost accounting.

Reference no: EM131500019

Questions Cloud

How trade-offs between different classes of agency conflicts : Describe how trade-offs between different classes of Agency Conflicts-Costs may produce Optimal Capital Structure in context of Jensen and Mecklings’ framework.
How much money docs the firm expect to collect in the month : How much money docs the firm expect to collect in the month of July?
What is the deadweight loss : Suppose that an individuals demand curve for doctor visits per year is given by the equation P = 100 - 25Q, where Q is the number of doc-tor visits per year.
Contrast normative theories with positive accounting : Contrast ‘normative' theories with ‘positive accounting' theory. Have we moved to a new paradigm and if so what is it.
What is your expected utility : To work this problem, you'll need a calculator that can take logarithms or a spreadsheet pro: gram. Suppose that your utility function is U = In(41).
How management failed to create an ethical environment : Determine how the organizational ethical issue was detected and how management failed to create an ethical environment.
Critically analyses and evaluates your company leadership : You will produce a written report that critically analyses and evaluates your company's leadership and management preferences using Cyert's organisational leadership perspective
What is the cost of equity : The Outlet has unlevered cost of capital of 14.2 percent-tax rate of 35 percent-expected earnings before interest-taxes of $23,400. What is the cost of equity?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd