Topic9WorkshopCFS121

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ACC30008 Accounting Theory 1 TOPIC 9 THE CONCEPTUAL FRAMEWORK & STANDARD SETTING RANKIN ET AL. (2023) CH. 5 & 2
RECAP THEORIES SO FAR - ETHICS OVERLAY Theories from Topic 2: Normative Positive PAT Contracting theory Agency theory Institutional theory Stakeholder theory Legitimacy theory Contingency theory Regulatory Theories - Topic 3: Normative Signalling Accountability Public interest theory Capture theory Bushfire theory Ideology theory Earnings Management (EM) Theories from Topic 6: Efficiency vs opportunism? Bonus hypothesis Debt hypothesis Political cost hypothesis Perpetrated via: Accounting policy choice EM through accruals Real EM Smoothing Big bath write-offs Theories from Topic 7 Behavioural Biases Capital Market-Information EMH Topic 8 Sustainab- ility & Environ- mental Account- ing Topic 9 CF & Std Setting
LECTURE- RECAP 2018 Conceptual Framework (CF) - in Australia Applicable to financial reporting periods commencing on or after 1 January 2020 GPFS Vs SPFS Cautious prudence & Asymmetric prudence CF benefits - Technical benefits , Political benefits, Professional benefits CF criticisms - principles are too vague - too much room for alternative interpretations - simply describes current accounting practise - should be prescriptive (normative) and try to improve practi c e CF Vs Standards
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