Part I Introduction: Approach

Slides:

Advertisements

Similar presentations

GAAP and Accrual Accounting By Violeta Mercado. Address: Recognition Measurement Disclosure Generally Accepted Accounting Principles (GAAP)

Advertisements

Overview of Financial Statement Analysis Chapter 1.

Accounting Theory ( 5th edition) Wolk, Tearney & Dodd

Chapter 6: The Search for Objectives Importance of user needs and objectives after Accounting Research Studies 1 and 3 Between Accounting Research Studies.

Introduction to Research

Prepared by Arabella Volkov University of Southern Queensland.

INTERMEDIATE ACCOUNTING Chapter 2 Financial Reporting: Its Conceptual Framework © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied.

Accounting Theory ( 6th edition) Wolk, Dodd & Tearney

ACCOUNTING THEORY: TEXT AND READINGS

Accounting Theory: Roles and Approaches

GODFREY HODGSON HOLMES TARCA

Chapter 1 Preliminaries Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent.

The Conceptual Framework and Objectives of Financial Reporting

1 Chapter 15 Accounting Principles ACCT Objectives of the Chapter 1. Define the generally accepted accounting principles (GAAP). 2. Study the conceptual.

Research methodology for the formulation of an accounting theory 1. Inductive Method: Involve reasoning from the particular to the general. (Example: if.

Traditional approaches to the formulation of an accounting theory

SIMAD University Research Process Ali Yassin Sheikh.

Accounting Scholars – does it matter what we teach them? American Accounting Association Curriculum Challenge Contest San Antonio, Texas August 17, 2002.

1 CHAPTER 22 Consumer Finance Operations. 2 CHAPTER 22 OVERVIEW This chapter will: A. Identify the main sources and use of finance company funds B. Describe.

The Research Process Fun and Excitement for Economics Majors!!!

Accounting Information: Users and Uses Accounting Information: Users and Uses C H A P T E R 1.

©2004 Prentice Hall Business Publishing Introduction to Financial Accounting, 3e by Werner/Jones2 - 1 Chapter 2 Economic Decision Making.

After studying this chapter, you will be able to : 1.Explain the meaning and the changing role of accounting. 2.List users of accounting information and.

ACTG 6580 Chapter 1 – Financial Reporting and Accounting Standards Class Summary.

AOF Principles of Accounting

1. 2 Learning Outcomes Chapter 3 Describe the role that financial markets play in improving the standard of living in an economy. Describe how various.

ACTG 3110 Chapter 1 - Financial Accounting and Accounting Standards.

1-1 Financial Information Accounting? Identifies and Measures and Communicates Financial Information Accounting? Identifies and Measures and Communicates.

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Contents of course Module 1.Fundamental concepts in Microeconomics

The Big Picture: Enduring Understandings and Essential Questions.

Introduction to Research. Purpose of Research Evidence-based practice Validate clinical practice through scientific inquiry Scientific rational must exist.

Chapter 4 The New Tripartite Structure b Trace the demise of the APB. b Focus on the new view of accounting. b Consider the tripartite structure.

ACCOUNTING THEORY AND STANDARDS

Financial Analysis Introduction Sipei Zhang October- December 2015 Moodle : Financial Analysis Subject: « FSA » 1.

1-1 Financial Information Accounting? Identifies and Measures and Communicates Financial Information Accounting? Identifies and Measures and Communicates.

International Financial Reporting Standards (IFRS) Transition Prepared by L. Murphy Smith Professor of Accounting Texas A&M University For permission to.

Chapter 1 The Nature and Purpose of Financial Accounting.

INTRODUCTION TO INVESTING

Introduction to Accounting Preparing for a User’s Perspective

Psychology Notes 1.1.

introduction to accounting

MGT-491 QUANTITATIVE ANALYSIS AND RESEARCH FOR MANAGEMENT

COPYRIGHT © 2010 South-Western/Cengage Learning

Business Research Methods William G. Zikmund

Prepared by Arabella Volkov

Economics The study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided. The key word.

Accounting as a Form of Communication

Environment and Theoretical Structure of Financial Accounting

Introduction to Economics

ACCOUNTING - PRESENT AND PAST

251FINA Chapter One Dr. Heitham Al-Hajieh

ACCOUNTING THEORY: TEXT AND READINGS

CONCEPTUAL FRAMEWORK UNDERLYING FINANCIAL ACCOUNTING

THEORY IN EDUCATIONAL RESEARCH

Today’s Warm Up Pick up and complete the questionnaire at the front of the room – “Do You Think Like an Economist?”

Unit 1 Chapter 1 “The Economic Way of Thinking”

1 C H A P T E R Accounting Information: Users and Uses.

Business Research Methods William G. Zikmund

Accounting as a Form of Communication

COPYRIGHT © 2010 South-Western/Cengage Learning

GODFREY HODGSON HOLMES TARCA

Chapter 7 Conceptual Framework Project

LO 5-1 Compute various measures of return on multi-year investments.

Statement of Cash Flows

Key Ideas How do scientists explore the world?

Accounting as a Form of Communication

What is Business Activities to provide members of an economic system

CHAPTER 1 Review.

Statement of intent Key Stage: 5 Subject: Economics

Presentation transcript:

Part I Introduction: Approach Standard setting and theory formulation together chronologically. Key-change factors. Why together: They are related, dependent and interwoven. To provide background to understand New View of Accounting and FASB. To provide background to understand the CF project.

Chapter 1 Foundation of Standard Setting and Theory Formulation See “roots” of standard setting. Introduction to theory.

Pre-CAP Setting The past (1900, not 0000). Why the past?... Past as prologue to future Pre-CAP context…..

Pre-CAP Context: 1900 Accounting reflects economic environment, so describe in 1900: Public interest in capital markets Dominant capital source Financial media coverage Pubic interest in accounting Dominant management goals Stage of the economy New growth industries So….accounting is….. Little public interest in capital markets Loan capital was dominant Since FS to banks was private, little financial media coverage Little public interest in accounting Management interested in profits, growth, and cash flows to meet loans. Economy was in midst of manufacturing binge. New industries: automobiles So accounting was mainly private, no regulation, no standards, so no good?

Pre CAP Setting 1931 GE benchmark. Discussion Topics: 1931 GE Characterize tone Fact vs fiction Partial vs complete Simple vs sophisticated 3 interesting/surprising disclosures Bonds, Boom, Bust, Blame First opportunity (1932). Second opportunity (1936).

Standard Setting II: Committee on Accounting Procedure (CAP) I AICPA response 1938 Structure….. Issuances? SEC support? CAP approach?

Standard Setting III CAP II CAP Tenure 21 years. Bad situation. CAP evaluation.

Theory I Nature of Theory When you study theory… 1. fundamental nature 2. substance 3. essential concepts & principles Different than GAAP…..

Example Cases Text case

What exactly is theory... Theory defined: A coherent set of hypothetical, conceptual, and pragmatic principles forming a general frame of reference for a field of study. Or”….nets cast to catch.. ‘the world’ to rationalize, to explain and to master it.”

Why theory? Theory is designed to ... simplify complex world help identify and describe relationships between phenomena find stability lead to predictions

Purposes of Theory Three purposes of theory 1. explain 2. evaluate 3. facilitate development

Theory Verification Important Predict Explain Internal structure Real world

Approaches to Theory Formulation Intuitive cognitive flash vs. observed regularities 1960’s theory search Two main approaches inductive deductive

Standard Setter’s 2 Needs Authority Theory