RECENT ASSIGNMENT

PRBA005 Accounting Theory: ASSESSMENT 2
Due date:
Friday Midnight, Week 6
Length: As required in Part A and Part B.
1500-2000 words (Total assessment words)
Value: 20% of the Total Unit Assessment
Task Case Study: Critical analysis of a given accounting case.
Preparation Study Topics 1-5 through following the study guide and readings. Additional research in accounting literature.
Presentation Format and Submission Submit via CDU Learnline in word doc or PDF file.
Front cover: Assignment Cover Page via CDU Learnline
Assessment Font Style and Size: Times New Roman, 11
Student number to be indicated on the bottom left hand corner on each page, Times New Roman size 9
Page numbering on the bottom right hand corner, Times New Roman size 9
Left Text Alignment, 1.5 Line Spacing
Total Assessment Words – min of 1500, max of 2000
Use the Harvard method of referencing and ensure the bibliography style is consistent with the citation style. Do not number items in the bibliography. You are expected to use sources from the academic accounting literature. Examples of these sources are given below. DO NOT reference Wikipedia.
Much of the literature that will be useful to you was published in the 1990’s and the first few years of the 21st century. Some suitable academic journals to browse for this purpose include:
The Accounting Review
Accounting and Business Research
International Journal of Accounting Education and Research
International Journal of Accounting
Asia Pacific Journal of Management
The British Accounting Review
European Accounting Review Journal of Applied Accounting Research Accounting Research Journal, etc.
PRBA005 Accounting Theory: ASSESSMENT 2
Do NOT share files with other students— submission of identical work constitutes plagiarism, and you are liable for charges of misconduct regardless of whether you copied the work or provided the original work to others.
Note that plagiarism also includes presenting the ideas of others as if they were your own. It does not only refer to the absence of inverted commas or using the exact words of others. Referencing of sources is expected in Part A and B of this assignment. You have a bonus from doing this correctly since that referencing also provides authoritative support for the statements you make.
Be aware that any evidence of plagiarism will be investigated and disciplinary action taken.
See the sections on plagiarism on CDU Learnline.
Part A
The European Commission made the following statement in a press release issued in 2002:
“European Commission (EC) has welcomed the Council's adoption, in a
single reading, of the Regulation requiring listed companies, including banks and insurance companies, to prepare their consolidated accounts in accordance with the International Accounting Standards (IAS) from 2005 onwards, The Regulation will help eliminate barriers to cross-border trading in securities by ensuring that company accounts throughout the European Union (EU) are more reliable and transparent and that they can be more easily compared. This will in turn increase market efficiency and reduce cost of raising capital for companies, ultimately improving competitiveness and
helping boost growth.”
Required:
You are required to evaluate the above statement. In particular you should consider:
(a) That it is argued that the process of the regulation of financial accounting is ‘political’ in nature? Do you agree or disagree? Explain your answer.
(b) Whether the adoption of Internal Financial Reporting Standards (IFRS) in different countries, with different overview and enforcement mechanisms, necessarily leads to generation of financial information that is more 'reliable' and 'comparable'.
(c) Identify and explain the perceived benefits that flow from the decision that a country will adopt the International Financial Reporting Standards (IFRS).
(d) Identify and explain the perceived disadvantages that flow from the decision that a country will adopt the International Financial Reporting Standards (IFRS).
Part B
Assume that the government has become concerned that existing disclosure regulation tends to fixate on the financial performance of organisation but fails to address other aspects of corporate performance, including failure to provide information about corporate social and environmental impacts as well as about various initiatives and investments an organisation has undertaken to improve its social and environmental performance. As such, the government has decided to introduce legislation that will require business corporations to provide information about the social and environmental impacts of their operations, as well as the social and environmental initiatives undertaken by the corporations.
Required:
You are required to do the following:
(a) Explain from a ‘public interest theory perspective’ the rationale for the government introducing the legislation and how the government will ultimately assess whether any proposed legislation should actually be introduced.
(b) Predict from a ‘capture theory perspective’ the types of constituents that will benefit in the long run from any social and environmental disclosure legislation.
(c) Predict from an ‘economic interest group perspective’ whether any potential legislation to be introduced will lead to an increase in the accountability of corporations in relation to their social and environmental performance despite any implications that this increased corporate accountability might have for the financial success of large but heavily polluting organisations.