Answering Q1The purpose of Q1 is to demonstrate that you can analyse a current accounting issue reported in a news article, and to
write a report for the CEO that provides her with a deeper theoretical understanding of the issues identified in the news article.
A well-designed answer will:
Present as a report to the CEO.
- Include a copy of the news article.
- Identify, describe and discuss the key issues reported in the news article.
- Link the major issues to ACC518 topics and theories:
i) Identify a range of relevant accounting theories that are applicable to the issues reported in the news article.
ii) Deconstruct and evaluate the issues reported in the news article through the use of theories.
iii) Present a logical conclusion regarding the significance of the issues reported in the news article.
- Critically evaluate the underlying assumptions of the accounting theories, in particular, with regard to their application to the issues identified in the news article.
First of all, consider the presentation design of this assessment.
Your paper is meant for the CEO to read, so when you do your analysis of the article, write your response
to her. Begin your paper with an introductory paragraph of around
50 words that outlines what your paper will be presenting; write the introduction to the CEO... There is a lot of subject content contained within the above design, and the question has a tight word-count, so your answers will need to be concise. The following are directed links that form the core of the resources and readings necessary to answer Q1.
- Include a copy of the news article 1 mark
Here is a link to the news article that we reviewed in class:
https://www.cchdaily.co.uk/iasb-urged-streamline-standards-setting
Here is how to reference the news article:
Reference ListSweet, P. (2017, 2 August). IASB urged to streamline standards-setting.
CCH Daily. Retrieved from https://www.cchdaily.co.uk/iasb-urged-streamline-standards-setting
(Sweet, 2017)
- Take a screen shot from the website and paste a copy of the article into your Word doc.
- Format the image: crop, border.
- Label the image: Figure 1: IASB urged to streamline standards-setting.
- Reference the image: (Sweet, 2017)
Figure 1: IASB urged to streamline standard-setting (Sweet, 2017)
2 Aug 2017
IASB urged to streamline standards-setting The International Accounting Standards Board (IASB) should work to simplify standards and ensure they are released more quickly, according to independent researchPat Sweet: Reporter, CCH Daily and Accountancy
A reputation research study commissioned by the trustees of the IFRS Foundation identified several weaknesses in the standards-setter’s approach. Areas identified for further development were mainly around the complexity of its standards, the timeliness of its standard-setting process and the need to respond quickly in a changing world.
Especially long development and consultation phases were viewed as problematic, and almost half of interviewees do not believe that the Foundation has the balance right between quantity of due process and speed. Detractors raised what they see as a tendency to be too technical or conceptual, though many also cite the difficulty in balancing transparency with a fast pace. Suggestions to address this balance range from improving processes to focusing its efforts on simple, practical, and workable standards.
Respondents said they would also favour more opportunities to engage outside the consultation process through informal dialogue, training and events. There were also concerns that small companies and developing markets are at risk of being sidelined, and said more consideration should be given to the difficulties they experience in implementing standards.
The study was conducted earlier this year by Ebiquity, an independent research agency, which interviewed 50 senior stakeholders from around the world and also ran online surveys of members of the IFRS Foundation’s advisory bodies, as well as a separate survey of senior IASB staff.
The research found that the IFRS Foundation is perceived as being successful in achieving its public interest mission, and is highly rated for transparency, independence and professionalism.
The IFRS Foundation said the findings are generally in line with feedback received through other channels, and the organisation has already introduced some changes in the areas identified as warranting improvements.
Michel Prada, chairman of the IFRS Foundation trustees, said:
‘These findings are very encouraging, particularly given the size of the organisation compared to our global remit, and will help the trustees discharge our oversight responsibilities.We will work with the board and staff to ensure that our future plans and priorities are informed by this feedback.’‘Perceptions of the IFRS Foundation Reputation Research Findings’ is here. The news article refers specifically to the IFRS Foundation reputation research findings.
The IFRS present the study that is the subject of the news article in the ‘News and events’ section of the IFRS website.
Here is the link to the IFRS website:
http://www.ifrs.org/news-and-events/2017/07/ifrs-foundation-trustees-publish-findings-on-independent-perception-research/
Here is how to reference the IFRS website:
Reference ListIFRS Foundation Trustees publish findings on independent perception research. July 2017. Retrieved from http://www.ifrs.org/news-and-events/2017/07/ifrs-foundation-trustees-publish-findings-on-independent-perception-research/
(IFRS publish findings, XXXXXXXXXXJuly 2017
IFRS Foundation Trustees publish findings on independent perception researchThe Trustees of the IFRS® Foundation, responsible for the governance and oversight of the International Accounting Standards Board (Board), today published the findings of independent research commissioned to better understand stakeholder attitudes towards the work of the IFRS Foundation and the Board.
The research found that the IFRS Foundation is perceived as being successful in achieving its public interest mission, and is highly rated for transparency, independence and professionalism. The research also identifies areas for further development, mainly around the complexity of its Standards, the timeliness of its standard-setting process and the need to respond quickly in a changing world.
The research was conducted between February and May 2017 by Ebiquity, an independent research agency. Ebiquity interviewed 50 senior stakeholders from around the world. That research was then supplemented with online surveys of members of the IFRS Foundation’s advisory bodies, including the IFRS Advisory Council and the Accounting Standards Advisory Forum, as well as a separate survey of the Board and senior staff.
As a follow up to the strategic review conducted in 2016, the commissioning of the research is part of a broader initiative led by the Trustees to develop a series of key performance indicators by which to report on the overall effectiveness of the IFRS Foundation.
The findings of the research are generally in line with feedback received through other channels, and the organisation has already introduced some changes in the areas identified as warranting improvements.
Michel Prada, Chairman of the IFRS Foundation Trustees, said:
These findings are very encouraging, particularly given the size of the organisation compared to our global remit, and will help the Trustees discharge our oversight responsibilities.We will work with the Board and staff to ensure that our future plans and priorities are informed by this feedback. We are grateful for the many insights and thoughtful contributions provided by our stakeholders from around the world.The full report can be accessed here. Here is a link to the IFRS Reputation Research Report:
http://www.ifrs.org/-/media/feature/groups/trustees/ifrs-reputation-research-report-jul-2017.pdf?la=en&hash=F984D2F8A1845525993F50FB5AE2FEE26472162F
Here is how to reference the IFRS Reputation Research Report:
Reference ListIFRS Foundation XXXXXXXXXXIFRS Reputation Research Report,
Perceptions of the IFRS Foundation: Reputation Research Findings, July 2017. Retrieved from http://www.ifrs.org/-/media/feature/groups/trustees/ifrs-reputation-research-report-jul-2017.pdf?la=en&hash=F984D2F8A1845525993F50FB5AE2FEE26472162F
(IFRS Foundation, 2017, p.xxx)
- Identify, describe and discuss the key issues reported in the news article 2 marks
˜
375 wordsTell the article’s story IN YOUR OWN WORDS clearly outlining the key issues:
- IFRS Foundation reputation research study
- Identified weaknesses in the standard-setters approach
- Complexity, timeliness, slow response rate
- Long development and consultation phases
- Quantity of due process v speed
- Too technical or conceptual
- Suggested improvements
- Simple, practical, workable standards
- Informal dialogue, training and events
- Focus on small companies
- Ebiquity
- IFRS Foundation successful
- Achieves public interest mission
- Transparency, independence, professionalism
- Findings encouraging, informative
- Linkage of the major issues reported in the news article to topics and theories covered in ACC518 3 marks
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850 wordsi) Identify a range of relevant accounting theories that are applicable to the issues reported in the news article
There a number of ACC518 topics that are applicable to the news article:
- The nature, construction and verification of theories
- Ebiquity's research process is deductive
- The standard-setting process is deductive
- Normative accounting theories
- IFRS develops prescriptive standards
- Accounting regulation and politics
- Public interest, private interest, capture theories
- The standard-setting process
- IASB is responsible for the development and publication of IFRS Standards
- International accounting
- Standardisation of accounting
- IASB's principles-based standards
ii) Deconstruct and evaluate the issues reported in the news article through the use of theories
The following guidance refers to the issues reported in the news article as outlined IN YOUR OWN WORDS in b), and the
- IFRS Foundation reputation research study
- Identified weaknesses in the standard-setters approach
- Long development and consultation phases
- Quantity of due process v speed
- Too technical or conceptual
- Suggested improvements
The news article presents more negatives than positives. Consider the issue that the standard-setting process has been identified as having several weaknesses by looking at the subject using the theory for the standard-setting process.
- The standard-setting process
The IFRS website is the primary resource for information on the standard-setting process. Here is the link to the IFRS website:
http://www.ifrs.org/about-us/how-we-set-standards/
Here is how to reference the IFRS website:
Reference ListIFRS: How we set IFRS Standards. September 2017. Retrieved from http://www.ifrs.org/about-us/how-we-set-standards/
(IFRS How we set IFRS Standards, 2017)
As you click on the different hyperlinks in the website, you will need to update each reference to reflect the new webpage… It is also worth reviewing the IFRS archive website:
Here is the link to the IFRS archive website:
http://archive.ifrs.org/How-we-develop-standards/Pages/How-we-develop-standards.aspx
Here is how to reference the IFRS archive website:
Reference ListIFRS: How we develop IFRS Standards. September 2017. Retrieved from http://archive.ifrs.org/How-we-develop-standards/Pages/How-we-develop-standards.aspx
(IFRS How we develop IFRS Standards, XXXXXXXXXXYou should also consider the IFRS Reputation Research Report and include direct references to those sections relevant to these identified weaknesses:
IFRS Foundation pp.13, 16, 23, 24, 26, 29
- IFRS Foundation successful
The news article describes the IFRS as being successful in achieving its mission and goals. Describe what the IFRS outlines as its role and purpose in order to validate its reported success.
- Standardisation: Deegan pp XXXXXXXXXX
- IASB: Deegan pp XXXXXXXXXX
- Principles-based accounting standards: Deegan p.123
- Accounting regulation and politics
- Public interest theory: Deegan pp.79-80
- Capture theory: Deegan pp XXXXXXXXXXalso see Cortese p.55 for a contrary argument)
- Private (economic) interest theory: Deegan pp XXXXXXXXXXYou should also consider the IFRS Reputation Research Report and include direct references to those sections relevant to the IFRS's role and purpose:
- IFRS Foundation pp.12, 14, 15, 17, 18, 21, 22, 25, 28, 30
- Normative accounting theories
The standard-setting process is deductive, going from the general (the accounting issue under consideration) to the specific (the resultant accounting standard). The standard-setting process incorporates the conceptual framework as a set of guidelines used when developing standards.
- IFRS website: How we set IFRS Standards
- Conceptual frameworks: Deegan pp XXXXXXXXXXiii) Present a logical conclusion regarding the significance of the issues reported in the news article
Round off your linkage of the major issues reported in the news article to topics and theories covered in ACC518 with a logical conclusion.
- Critically evaluate the underlying assumptions of the accounting theories, in particular, with regard to their application to the issues identified in the news article 3 marks
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285 wordsThe following are some questions and/or statements that can guide your critical evaluation of the news article. Remember, you are writing this report for the CEO, so use this critical evaluation to provide her with a deeper theoretical understanding of the issues identified in the news article
through your insights, in your own words. - Does the article present a valid representation of the IFRS Reputation Research Report?
- The article presents more negatives than positives, and yet the report presents more positives than negatives. Why do you think this is?
- Explain how the accounting theories help to provide the CEO with a deeper understanding of the issues discussed in the news article.
- Focus your thinking on the interdependent relationships between international accounting, the standard-setting process, and accounting regulation and politics.
- Comment on the IFRS Reputation Research Report:
- Is the report valid?
- What does the IFRS hope to achieve through the report?
- Will the IFRS achieve these goals?
- If the IFRS does achieve its goals, what will be the outcomes:
- for accounting
- for the CEO