MSC COMMERCE

INDIVIDUAL ASSIGNMENT

MFA $605$: ADVANCED ACCOUNTING THOERY

INSTRUCTIONS: Answer ALL questions

The conceptual framework for preparation and presentation of financial statements outlines the objectives of financial reporting and the qualities of good accounting information, precisely defines commonly used terms such as asset, liabilities, equity, income and expenses, and provides guidance about appropriate recognition, measurement, and reporting. To be recognized, an item must meet the definition of an element and be measurable, relevant, and reliable. The conceptual framework allows for the systematic adaptation of accounting standards to a changing business environment. The IASB uses the conceptual framework to aid in an organized and consistent development of new accounting standards. In addition, learning the IASB$$s conceptual framework allows one to understand and, perhaps, anticipate future standards.

Required

a$)$ Discuss the due process of developing accounting standards

b$)$ Briefly discuss the value relevance of accounting information

c$)$ Using positive accounting theory, discuss the different hypothesis that may be used to argue the performance of the company

d$)$ Discuss the benefits and limitations of converged conceptual framework