Since this is a hot political issue in this country, the scenario aligns with 3 the predictions of the political hypothesis. It will be discussed later as to why the level of research as a basis for judging a theory is spurious when claiming success.
The companies and their industry representatives are strongly opposed to the proposed regulation. Watts and Zimmerman also say that regulation and political costs interfere with the operation of perfect markets. The actual return for ANZ is the change in the share price divided by the beginning share price from the start of trading on May 2nd to the close of trading on May 7th.
The matric subjects listed in the table below are sorted in alphabetical order. Part A is worth 30 marks.
Explain clearly how earnings management could take place. This examination paper is not to be released to the student at the conclusion of the examination.
How would inventory be accounted for under these conditions? The Premises of Positive Accounting Theory. Question 1 6 Marks According to most professional accounting bodies around the world, outline the minimum level of accounting knowledge that readers of financial statements are assumed to possess.
XJO Assume that the profit announcement took place at the close of trading on May 1st. While the Chambers is criticizing from a different paradigm his arguments are still valid.
Plausible explanations for examplethat much investment is done in an ad hoc manner also find no place with in the EMH framework. What percentage of net income before compensation did p offer Minnie? This leads to the conclusion that far from being a success, PAT is simply a mish mash of other theories that has been used as vehicle to promote the free market ideology that has dominated the political and research program.
Note that lead pencil is not to be used - please use blue or black ink Instructions to invigilators: Each of the non-language subjects has the corresponding Afrikaans exam papers with memoranda.
Other Information for use in answering Question 2: Therefore, the premises of Positive Accounting Theory can be summarized as: The historic costs are shown on the balance sheet.
Hence, ANZ underperformed the market for its level of beta risk by 0. Since inventory is a large expense component in a manufacturers income statement, choices with regard to any of these can significantly affect reported net income. Penalties for cheating are exclusion from the University and cancellation with academic penalty from the course concerned.
Provide an interpretation of your result. Above all, agency theory is hard to swallow on the basis that people are self-interested. The beta of ANZ is 0.
If more than five questions are answered in Part A, only the first five answers will be marked. The level of completeness of the market for these items largely determines just how much subjectivity is introduced into valuation. The most effective form of matric revision is to go through the past exam papers of your subjects.
This course is a survey of current financial accounting theory. This was then used to form and anti regulatory stance. That is, decision usefulness is provided by revealing to investors as many fair values of assets and liabilities owned by the entity.
Demonstrate how and why companies try to "manage" earnings, and the consequences of such earnings manipulation practices. Differences in ideology and research beliefs have also contributed to the debate as to its success.
Student ID Number Course: They all have deficiencies in at least one respect and when put together to form PAT they produce a theory that bears little resemblance to anything that can be applied to actual situations.Critical Perspectives on Accounting () 7, – RECONSIDERING THE ‘‘SOCIAL’’ IN POSITIVE ACCOUNTING THEORY: THE CASE OF SITE RESTORATION COSTS DEAN NEU AND CYNTHIA SIMMONS University of Calgary This paper seeks to challenge the hegemony of positive accounting theory explanations of managerial.
May 20, · Final pre-Exam study for Accounting Theory Part I. One long lecture that covers almost everything you missed in the course. If you found this really helpful, you can share it with your friends or.
Page 1 of 3 Term 3 Deferred/Supplementary Examination Financial Accounting Theory — ACCT PART B 30 MARKS LONG ANSWER QUESTIONS Answer BOTH questions. Each question is worth 15 marks (2 x 15 = 30 marks).
Past exams are made available so that you can view and become familiar with the styles of question that you may face in your exam.
On this page you will be able to view past exams for paper exams. Positive accounting theory (PAT) is a general term for any theory that provides descriptive information regarding the behavior of accountants.
The title has been used by Watts and Zimmerman and this is largely an expansion of previous studies carried out firstly by Fama and later by Ball & Brown in the ’s.
This course is a survey of current financial accounting theory. The purpose of the course is to develop accounting thought that can be applied to the practical understanding of the financial reporting process, the accounting profession, and the controversial role of accounting in today's dynamic business environment.Download