ACC518 - Current Developments In Accounting Thought
Session 1 2016
Faculty of Business
School of Accounting and Finance Internal Mode
Subject Overview
This subject covers a critical review of developments in accounting theory and professional standards including the search for a conceptual framework, the evaluation and comparison of various accounting models and discussion of contemporary management accounting and financial reporting issues.
Learning outcomes
On successful completion of this subject, you should
- be able to critically evaluate attempts to develop and apply a conceptual framework;
- be able to critically appraise the objectives of accounting and relate them to the various concepts of accounting discussed in earlier subjects;
- be able to analyse the possible usefulness of alternative measurement systems to historical cost; - be able to critically evaluate selected current financial reporting and management accounting issues.
Lecturer Details
Subject Coordinator Humayun Murshed Email [email protected] Phone To be advised.
Campus Other
Building/Room number To be advised.
About your lecturer

Shibly Abdullah
MA (Economics), MBA (Major in Professional Accounting), CA
I have been working in academia for the last 15 years together with being actively involved in academic and professional research. Currently I am working as a Lecturer and Course Coordinator of Accounting Programme at Charles Sturt University Study Centre. My previous experience at tertiary level includes lecturing accounting subjects at CQ University, Australia and American International University-Bangladesh. Before joining CSU I worked as a Head of Accounting Studies and Senior
Manager, Compliance at Academies Australasia. Recently I have obtained full membership of Chartered Accountants Australia and New Zealand (CAANZ). I am a member of the Editorial Board of the International Journal of Business and Innovation. My current research interests include corporate financial reporting and political and social perspectives of accounting.

Hui Zhen Li
Master of Professional Accounting, CPA
I have received my Master Degree of Professional Accounting from University of Sydney and am a member of CPA. I have been working as a senior accountant in a chartered accountant firm for 8 years. In addition to my professional accounting role, I am an accounting lecturer teaching both undergraduate and postgraduate accounting subjects at CSU. I have a solid industry experience and always bring real life examples to my lectures.
Learning, Teaching and Support Strategies
Class times and location
You would have received your timetable by email. You can also obtain a copy from the timetable stand outside the academic office or via the noticeboard. You can also obtain a current copy from the link below: https://interact2.csu.edu.au/webapps/blackboard/content/listContentEditable.jsp?content_id=_452392_1
Important: It is essential that you keep checking the timetable for the latest class information. The timetable may change until the second week of the teaching session, and it is important to monitor the timetable regularly on the noticeboard.
The weekly instruction in this subject will consist of a combined lecture /tutorial lasting up to 3 hours and will cover the main points from each topic.
Attendance is required at all scheduled lectures and tutorials.
How to contact your lecturer
Any questions concerning the teaching of this subject can be addressed to your subject lecturer.
Shibly Abdullah
Room 6, Level 1, 63 Oxford Street, Darlinghurst
Email: [email protected] (mailto:[email protected])
or
Hui Zhen Li
Room 10, Level 1, 63 Oxford Street, Darlinghurst
Email: [email protected] (mailto:[email protected])
Email is the best option. Please send a brief message regarding the issue. Include your phone number so a staff member can contact you via phone if that is more appropriate. When sending emails, please state the subject code and your name and ID number in the email title/subject. This will avoid your email being treated as SPAM.
How you are expected to engage with the subject
In this subject we will meet for a 3 hour session where we will discuss that week's topic. Before you come to class you need to have looked at the online activities in the Interact site and read the text so that you can contribute to the class and derive more meaning from the activities that we will do in class. We will spend class time working through the topic questions, discussing them and preparing responses. In addition we may use video, games and case studies to enhance understanding of certain topic areas. It is helpful to have a small task to complete early in the session so that you have a focus in the subject from the very first day, and so the first assessment is set for this purpose.
The modules for this subject have been written specifically to guide you through the sections (and questions) of the prescribed textbook relevant to each topic. The modules and all of your subject materials are available on the Interact site under the Topics link in the left hand side menu. I suggest that for each topic you read the learning objectives carefully, read the overview, have a quick skim of the text before attending weekly tutorials. Once you have got a feel for what the topic is about try and make a good set of notes under each of the topic review questions in that topic. These questions have been designed to give you focus in the topic, so it really helps to prepare a useful set of answers to them. Once you feel ready you can test yourself by taking the online quiz in the topic – there are no marks recorded and you can do each quiz as many times as you like.
You should check the Interact2 Site at least weekly for postings, announcements, lecture information and other resources that will assist your studies or additional information and resources vital to your success in the subject. Studying at university does not mean studying alone. During class you will have an opportunity to interact the lecturer as well as your peers. Use the subject schedule to plan your studies over the session.
In this subject there are also lots of opportunities for you to engage with me, with your peers and with the subject. If you have any questions, feel free to discuss during the class.
Academic learning support
Information on effective time management is available on the CSU Learning Support website via the following link: student.csu.edu.au
Visit the learning support website for advice about assignment preparation, academic reading and note-taking, referencing, and preparing for exams at: http://student.csu.edu.au/study
The Study Centres also offers a range of workshops specifically targeting the needs of international students. These workshops run multiple times per week and build into the comprehensive Academic Skills Development Program that all students should participate in. Additionally, a number of student volunteers are available to assist you in a program known as Discipline Support Sessions. Please see the timetables for these programs on the noticeboards at the campus and also with the iLearn Interact2 Organisation site.
You may also contact:
Dr Susan Lee
Study Support Coordinator
Phone: 02 9291 9337
E-mail: [email protected] ( mailto:[email protected] )
Angela Maag
Study Support Coordinator (Intervention)
Phone: 0292919358
E-mail: [email protected]

For appointments, please see Reception.
Queries regarding the content of this subject should be directed to your Subject Lecturer.
Library services
CSU Study Centre Library Collection
The CSU Study Centre Library Catalogue is online at: http://primo.unilinc.edu.au/primo_library/libweb/action/search.do?vid=SGA
You can search for books in the local Sydney library collection. You are able to Sign In to the CSU Study Centre library catalogue online to place requests for books that are on loan to other students, check their library record, and renew loans prior to the due date. This library service is available online 24 / 7.
When books with outstanding requests are returned to the CSU Study Centre Library, an email will be automatically sent to the next student who is waiting for that book.
CSU Library
The CSU Library online provides access to online and print material, using Primo Search to find:
http://student.csu.edu.au/library
Online journal articles eBooks
Print books from CSU Library (Interlibrary loans may be requested – see the Library Manager)
Company and government reports
eJournals
Dissertations & theses
Newspapers including Business & Financial newspapers in Factiva (see Business & IT Journal databases)
Other Reference resources (eg. Australian Bureau of Statistics, Australian standards, online encyclopaedias & dictionaries to be read on the computer
You will also find library guides, Subject Reserve for any readings, eg. ACC100, BUS100, ITC100, etc., and online assistance via free call phone number 1800 808 369, or Ask a Librarian – Live Chat or Web Form.
Other CSU Library services and resources: https://student.csu.edu.au/library/study-research
Video tutorials in research skills, finding journal articles for assignments, topic analysis
Endnote referencing software
Other online library services to help you successfully complete your assignments
Online Tutorials http://student.csu.edu.au/library/study-research/training-tutorials-videos Learn how to:
Use Primo Search to find eReserve study materials and journal articles
Search journal databases and web resources for information for your assessment tasks
Identify appropriate sources of information and peer reviewed material, to evaluate resources
Subject Library Resource Guides http://libguides.csu.edu.au/
Subject Library Guides are a great way to get started with research. Each online guide is tailored to a specific area of study, including Accounting, Business and Information Technology outlining how to research in your area and where to look for information.
Library Help
http://student.csu.edu.au/library/help-contacts
Friendly and quick assistance is available. Ask for help finding information and navigating the library's extensive eResources.
National Library of Australia – Trove database
http://trove.nla.gov.au/
The Trove database from the National Library of Australia provides access to many different online resources on any subject.
University of Technology Sydney – Blake Library
http://find.lib.uts.edu.au/
All students with a CSU student card can access University of Technology, Sydney (UTS) library for free 10 times per year or paying $50 per year to join CAUL scheme to borrow books and use the UTS library as often as students like. The UTS Blake library is located near Chinatown: corner Quay Street & Ultimo Road, Haymarket. Ph: 02 9514 3666.
Contact Details below for any student enquiries:
CSU Study Centre Darlinghurst Library
Zora Janeva – Senior Library Technician
Ph: (02) 9291 9315; email: [email protected] ( mailto:[email protected] )

Your workload in this subject
CSU Academic Senate policy states that a standard 8 point subject should require students to spend a total of between 140-160 hours engaged in learning and teaching activities. This subject has been developed to comply with this policy.
Each week you should spend around 9 - 11 hours studying this subject – obviously some weeks may require more time than other depending on how you work – but the following is a guide for your information:

Text and Learning Materials
Prescribed text(s)
Prescribed text:
Deegan, C. (2014). Financial accounting theory (4th ed.). McGraw-Hill: Sydney.
Students must have access to a copy of the prescribed textbook.
Schedule
This study schedule has been devised to assist in your planning during the session, and is intended as a guide only.
Session Week Topics Learning activities
Week Commencing
1 29 Feb 2016 1. The nature, 1 . Refer to the topic -1 notes in Interact 'Topics'. Listen to the mini construction and lecture and read e-reserve readings 1.1 and 1.2 verification of 2 . Read Textbook Chapter -1 pp 88 – 106 make notes and theories answer the following questions from the Chapter: 1.1, 1.3, 1.4 , 1.5 , 1.7, 1.10, 1.13 , 1.15 and 1.18.
2 7 March 2016 2. Measurement 1 .Refer to the topic - 2 notes in Interact 'Topics', listen to the mini in accounting lecture and read e-reserve readings 2.1, 2.2 and 2.5
2 . Read Textbook Chapter. 5, pp. 164-169 & 251-256, make notes and answer these questions from the Chapter: 5.2, 5.3, 5.4, 5.6, 5.7,
5.9 , 5.11 and 5.15
3 14 March 2016 3. Normative 1 .Refer to the topic - 3 notes in Interact 'Topics'. LIsten to the mini accounting lectures and read the e-reserve reading 3.1.
theories 2 . Read Textbook Chapters 5 pp. 169-211 & Chapter 6, make notes and answer these questions from both Chapters: 5.17, 5.19, 5.20 , 5.24 and 5.25 from Chapter 6 - 6.2, 6.3, 6.5, 6.7, 6.10, and
6.12.
** Please attempt ungraded online test (Test open on 14 March
6.00 AM and close 18 March 11.59 PM )
4 21 March 2016 4. Accounting 1 .Refer to the topic - 4 notes in Interact 'Topics'. Listen to mini regulation and lectures and read the e-reserve reading 4.1
politics 2 . Read Textbook Chapter: 2 and make notes. Answer these
questions from the Chapter: 2.1, 2.2, 2.4, 2.5, 2.6, 2.7, 2.8 and 2.10.
5 28 March 2016 5. The standard 1 . Refer to the topic - 5 notes in Interact 'Topics'. Listen to the setting process mini lecture and read e-reserve readings 5.1, 5.2 and 5.3
2 . Read textbook Chapter 3 and answer these questions from the chapter: 2.1, 2.2, 2.3, 2.4, 2.6 and 3.2, 3.3, 3.5, 3.7, 3.9, 3.10, and
3.12. Assignment -1 (15%) due on Saturday April 2 2016
6 4 April 2016 6. Positive 1 . Refer to the topic - 6 notes in Interact 'Topics'. LIsten to the accounting theory mini lectures and read e-reserve readings; 6.1 and 6.2 2. Read Textbook Chapter -7 make notes and answer the following questions: 7.1, 7.2, 7.4, 7.6, 7.9, 7.10, 7,12, 7.13, 7.15 and 7.16
7 11 April 2016 Mid-session Break
8 18 April 2016 Mid-session
Break
9 25 April 2016 7. International 1. Refer to the topic -7 notes in Interact 'Topics'. listen to the mini Accounting lecture and read e-reserve readings; 7.1, 7.2 and 7.3.
2. Read Textbook Chapter - 4 make notes, and answer the following questions : 4.2, 4.3, 4.4, 4.7, 4.8, 4.9, 4.10 and 4.12.
10 2 May 2016 8. The History of 1 .Refer to the topic - 8 notes in Interact 'Topics'. Listen to the mini Accounting: The lecture and read e-reserve readings 8.1, 8.2 and 8.3. theoritical Assignment -2 (25%) due on Saturday 7th May perspective
11 9 May 2016 9. Critical 1 . Refer to the topic - 9 notes in Interact 'Topics'. Listen to the perspective in mini lecture and read e-reserve reading 9.1.
accounting 2 . Read Textbook Chapter 12 and answer the following questions :
12.1 , 12.2, 12.4, 12.5, 12.7, 12.8, 12.10, 12.11, 12.16 and 12.18
12 16 May 2016 10. Management 1. Refer to the topic -10 notes in Interact 'Topics'. Listen to the Accounting mini lecture and read e-reserve readings 10.1, 10.2, 10.3 and 10.4 and answer 10.1 and 10.2 review questions.
13 23 May 2016 11. Environmental 1 .Refer to the topic -11 notes in Interact 'Topics'. listen to the mini accounting lecture and read e-reserve reading 11.1
2 . Read Textbook Chapter 9 and answer the following questions :
9.1 , 9.3, 9.5, 9.7, 9.10, 9.11, 9.14 and 9.15

**It is helpful to have a small task to complete early in the session, so that you have a focus in the subject from the very first day, and so I have set an ungraded mini-quiz in week 3. The quiz includes questions to help you identify if you need to refresh your referencing skills. Your competence in APA referencing will assist you in the successful completion of the two assignments. If you don't attempt the quiz, I may contact you to have a chat about study and if there are any issues that I can help with.
Assessment Information
Introduction to assessment
To protect the academic integrity of the subject, you may be asked to complete an additional test ( which may be verbal) if I or another member of the teaching staff have doubts that the work that you have submitted for an assessment item is your own. This test would be held within 4 weeks of the submission of the assessment.
Detailed information regarding:
Sample exam (for subjects with a formal exam)
Pass requirements
Grades
Presentation
Submissions
Extensions
Penalties for late submission
Assignment return
Resubmission Plagiarism
are included in Appendix 1.

* due date is the last date for assessment items to be received at the University
** applies only to assessment items submitted by the due date
Assessment item 1
Assignment 1
Value: 15 %
Due date: 02- Apr -2016
Return date: 26- Apr -2016
Length: 1500 words
Submission method options
Alternative submission method
Task
Find a professional journal article or web page report of an item of accounting news. The report/article must refer to a current event, consideration, comment or decision that has been published on or after 1 st January, 2016. Your article could come from one of the professional journals such as 'Charter', from ICAANZ, CPA Australia or ICAEW UK or from other professional bodies. The article should not come from an academic journal. Academic journals generally publish 2 or 4 times a year, thus you may not be able to find the latest accounting news. If you are having a problem ensuring that your article is from an appropriate source, contact your Subject Coordinator for advice.
In your own words, write an essay on the article that you have found. Relate the concepts ideas and facts to one or more theories or topics you have studied in this session. For example, the selected article may link to topics such as measurement in accounting, normative accounting theory ( Conceptual framework) or Accounting regulations and politics.
Provide a copy of the article with details of the source, date and page numbers with your report.
Academic writing and appropriate referencing are important componets of this assignment. Please follow the link for resources to improve your writing skills, if you wish to do so.
-http://bit.ly/FoBAcademic-Writing-Skills- bit.ly/FoBAcademic-Writing-Skills
Rationale
This assignment is designed to assist you in:
• Gathering and synthesising knowledge in order for you to analyse and comment critically on the application of accounting theories;
• Critically appraising the objectives of accounting and relate them to the various concepts of accounting;
• Analysing the possible usefulness of alternative measurement systems to historical cost;
And
• Developing your learning through the application of the concepts covered in topics 1 to 3
Content assessed: Various accounting theories, measurement issues under IFRS and Conceptual Framework.
Key generic skills: Research, critical thinking and analytical writing
Subject learning outcome for Assignment -1: Be able to critically evaluate selected current financial reporting and management accounting issues.
Marking criteria
Assessment - 1 Marking criteria
Criteria High Distinction Distinction Credit Pass Marks
Ability to Student has Student has Student has An attempt has been
research and produced a produced a detailed produced report made to understand and describe an comprehensive report on the on identified describe article. Limited accounting report identifying all accounting news accounting news inclusion of facts and /3 issue. key issues in depth, from the selected from the selected details from the article. with examples from article, with article, with Inclusion of the selected article. identification of all identification of professional key issues. most key issues.
journal Link to the article article of Copy of the article Copy of the article provided.
accounting provided. provided. Copy of the article news provided.
Description Advanced Clear identification Clear Some attempt to
of major articulation and of relevant issues, identification of identify issues in issues in identification of key some detailed the issues in the financial reporting. /3 article that issues that have been discussion. article. Limited you selected discussed in the discussion. to discuss. article.
Integration Response identifies a Response uses Most relevant The discussion addresses of major range of relevant theory to provide a factors have been most of the issues raised
issues in one topics and theories clear explanation identified, with a in the task but lacks or more and is able to and analysis of base level clarity and relevant /2 topics deconstruct and most of the description of discussion presented in evaluate the issues relevant issues in each. the subject. through the use of the article.
theories and arrive at a logical position, for example by synthesizing the insight of different theories.
Critical The report critically The report The report Discussion rather than a
Capacity: analyses the issues critically analyses critically analyses critical analysis has been
Has the raised in the article all the underlying most issues that used to create a general student and relates findings assumptions of the were discussed in report with little or a critically to the current debate accounting theories the article with lack of evidence of analysed the in accounting. in the examples limited depth, independent critical underlying The report clearly used. lacks connection thinking in regards to assumptions outlines the major to the focus of the issues of the article. /3 of the findings of the findings.
accounting investigation and the theories they impact of these have used as findings to financial examples. accounting
reporting.
Academic
Writing: Is Writing is engaging Appropriate Appropriate Appropriate structure, the answer with appropriate structure, accurate structure, accurate accurate, mostly professionally structure, accurate use of syntax, use of syntax, accurate syntax, spelling written and use of syntax, spelling and vocabulary, and punctuation; presented. spelling and punctuation; spelling and correctly refers to /2
punctuation; correctly refers to punctuation; minimum number of correctly refers to an an extensive correctly refers to sources to support extensive variety of variety of sources more than the arguments, including sources to support to support minimum prescribed texts. arguments, including arguments, requirement of Reference list used, prescribed texts and including sources to support formatted in APA style, a broad range of prescribed texts arguments, with minor errors.
additional readings; and a broad range including reference list of an of additional prescribed texts extensive range of readings; reference and recommended resources used, list of an extensive readings.
correctly formatted range of resources Reference list using APA style. used, correctly formatted in APA formatted using style, with few or APA style. no errors.

Use of source Refers to an Correct use of Demonstrates use Limited but appropriate material extensive variety of relevant sources of multiple source consultation and sources to support from within appropriate background reading.
arguments, including prescribed sources. /2

Presentation
Assessment items should be typed.
An essay style of answer is expected with an introduction, body and conclusion for each component. Subheadings are acceptable, point form is not.
Use 1.5 spacing.
Use a wide left margin. Markers need space to be able to include their comments.
Use a standard 12pt font such as Times New Roman, Calibri or Arial.
Left- justify body text.
Include a separate title page with your name, student number, subject code, assessment number and assessment question. Include class time and tutor's name if applicable.
Number your pages (except the cover page).
Use a header or footer with your name and student number on each page.
Always keep a copy of your assessments. Both a hard copy and an electronic copy. Grammar, spelling and syntax are important. Always use your spelling and grammar checker, but remember that this does not pick up all errors. You must still carefully edit your work. You may find reading your assignment out loud will assist you in identifying and correcting some mistakes.
Requirements
This assessment requires APA referencing. Marks are specifically allocated both to the consideration of appropriate source material and acknowledging its source through correct referencing. More information on APA can be found at: http://student.csu.edu.au/study/referencing-at-csu
Assignments must be submitted through Turnitin. Further details about submission are provided in Appendix 1.
Assessment item 2
Assignment 2
Value: 25 %
Due date: 07- May -2016
Return date: 31- May -2016
Length: 2500
Submission method options Alternative submission method
Task
Question1: Reflection on feedback given to Assessment 1 3 Marks (300 words )
Please provide reflection on the advice that you were given by the marker for Assessment Item 1 and discuss how you were able to use this feedback to enhance your research and writing skills in the preparation of Assignment -2.
Question 2 Essay
11 marks (1100 words excluding table of content and references )
Find the comment letters received on a current exposure draft or proposal for a new accounting standard. (These can be found on the websites of most standard setting organizations such as IASB, AASB or FASB. Hint: These websites can be quite difficult to navigate, so as a first step try to type "IASB comment letters" in to Google or other search engine of your choice). Read a sample of the comments from a range of respondents and select five respondents, for example from professional accounting bodies, industry, companies or corporate bodies. Include copies of the comment letters you wish to discuss and complete the following task.
a) Describe on your own words the issues that the exposure draft/proposal and comments letters dealt with.
b) Is there agreement among the various groups? Describe the issues where there is agreement/ disagreement and provide examples.
c) In your opinion, which of the three theories of regulation (Public interest theory, Economic interest group theory [Private interest] and Capture theory) explain the comment letters? Justify your answer.
Question 3 Essay
11 marks (1100 words excluding table of content and references )
Read the following article which is available online at http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1298&context=buspapers
Cortese, C. L. (2013). Politicisation of the international accounting standard setting process: evidence from the extractive industries. Journal of New Business Ideas and Trends, 11 (2), 48-57.
The article details many issues of relevance to the accounting theories we have studied this semester. Relate the concepts, ideas and facts of the article to the following topics;
1. International Accounting Theory
2. The Standard Setting Process
3. Accounting Regulation and Politics
For each theory, outline its major ideas and assumptions and discuss if the article supports or does not support the major ideas of the theory.
Rationale
These assessments are designed to assist you:
• In gathering and integrating knowledge on the theories which you have learned from topics 4 to 7. • In developing your learning through the application of the concepts covered in topics 4 to 7 • To demonstrate your level of understanding and the level of your research efforts.
Content assessed: Accounting regulation and politics and standard setting process and international accounting.
Key generic skills: Research, critical thinking and analytical writing
Subject Learning Outcomes: To critically evaluate attempts to develop and apply the conceptual framework and to critically appraise the objectives of accounting and relate them to the various concepts of accounting discussed in earlier subjects.
Marking criteria

Assessment 2 - Question 1 Reflection marking criteria
HD D C P Marks

Quality Provides confirmation of Describes the nature of Lists or quotes the Gives some detail on of the nature of feedback feedback provided; feedback provided; the nature of reflectionprovided, the students describes how this was attempts to describe feedback provided
thoughts on this feedback, used in Assessment 2. how this was used but this is not clear. /3 how the student Student is able to in Assessment 2. Student attempts to incorporated this in describe and reflect Student describes indescribe what they
have learned from
able to clearly describe from this process. have learned from this process but this
and reflect on what/how this process. is unclear or they have learned from inconsistent. this process.
/3

Assessment -2 Question 2 Marking criteria
High Credit Pass Marks
Distinction
Ability to Copy of the Copy of the comment Copy of the comment A link to the comment find comment letters included. letters included. letters provided.
comment letters Detailed discussion and /2
letters, included. identification of key Clear coverage of key Summary provided, summarise Insightful issues in the comment issues in comment with one or two issues
issues and articulation letters. letters. Most of the identified, but with identify and areas of conjecture are various other issues areas of identification All key areas of described. overlooked. agreement of key issues in conjecture are and the comment described. disagreement letters.

All key areas
Inclusion of
of conjecture copies of are discussed
comment
with evidence
letters. of all relevant factors.
Justification Response Response applies all the Response applies most Response briefly as to why the clearly applies theories and various of the theories to applies some of the /2 theory or all of the issues in the comment various issues in the theories to one issue in theories of theories to the letters and provides a comment letters and the comment letters and regulation various issues detailed justification provides a justification provides a basic best explains in the comment that critically evaluates for the chosen theory or justification for the the comment letters and the relevance of the theories. Capacity to most obvious theory.
letters provides an theories to the issue. provide further detail in insightful and justification. original justification that critically evaluates the relevance of the theories to the issue.
Critical The report The report outlines all The report outlines Discussion has been
Capacity: discussion the major issues of the some of the major used to create a general Analyse the clearly comment letters and issues of the comment report with little underlying addresses the provides a logical letters and attempts to evidence of independent assumptions issues raised in investigation and analyses but provides analysis or critical of the the comment analyses and evaluates limited evaluation of thinking on standard /3 accounting letters and setting process and theories they analyses, theoretical insights.

Assessment 2. Student is what they have learned depth what they

Criteria Distinction

Assessment - 2 Question 3 Marking criteria
Criteria High Distinction Distinction

Credit Pass Marks
Demonstrated Response clearly Response clearly Response clearly Response outlines the understanding explains and demonstrates an demonstrates an standard setting process /2 of the critically evaluates understanding of understanding of the and theories which
standard the theory and its the standard standard setting explain the standard setting assumptions and setting process setting process with process applies it to all of and underlying reference to the article. the issues raised in theories with process and underlying the article. reference to the theories with reference The essay provides article. to the article.
an insightful and The essay Some critical insight original discussion provides a solid demonstrated.
that critically discussion that evaluates the evaluates the relevance of the theory and the theory to the issue. article.
Demonstrated The response The response The response clearly Response outlines the understanding provides a detailed provides a outlines the theories of theories of regulation /3 of accounting evaluation of the detailed regulation and the and the influence of regulation and accounting evaluation of the influence of political political factors on the politics regulatory accounting factors on the standard standard setting process.
environment and regulatory setting process, with a critical environment and providing a strong link review of the with a review of with the article. theories that explain the theories that the regulatory explain the process. regulatory
Link to the article process. Strong and further source link to the article. material.
Critical Response clearly Response defines Response defines and Response defines the /2
Perspectives explains and and explains the explains the theory and theory and its in Accounting critically evaluates theory and its its underlying underlying assumptions the theory and its underlying assumptions and and briefly applies it to assumptions and assumptions and applies it to the issues one or two issues raised applies it to all of provides a clear raised in the in the article.The essay
the issues raised in connection to the article. provides a basic
the article. The issues raised in The essay provides a discussion of the most essay provides an the article. discussion of the obvious aspects of the insightful and The essay theory. Capacity to issue. original discussion provides a provide further detail that critically detailed in justification.
evaluates the discussion that relevance of the critically
theory to the issue. evaluates the
relevance of the
theories to the issue.
Academic Writing is engaging Appropriate Appropriate structure, Appropriate structure, Writing: Is the with appropriate structure, accurate accurate use of syntax, accurate, mostly /2 answer structure, accurate use of syntax, vocabulary, spelling accurate syntax, spelling professionally use of syntax, spelling and and punctuation; and punctuation; written and spelling and punctuation; correctly refers to correctly refers to presented? punctuation; correctly refers to more than the minimum number of correctly refers to an extensive minimum requirement sources to support an extensive variety variety of sources of sources to support arguments, including of sources to to support arguments, including prescribed texts. support arguments, arguments, prescribed texts and Reference list used,
including including recommended formatted in APA style, prescribed texts and prescribed texts readings. Reference with minor errors.
a broad range of and a broad range list formatted in APA additional readings; of additional style, with few or no reference list of an readings; errors. extensive range of reference list of an resources used, extensive range of correctly formatted resources used, using APA style. correctly formatted using APA style.
Use of source Refers to an Correct use of Demonstrates use of Limited but appropriate
Presentation
• Assessment items should be typed.
• An essay style of answer is expected with an introduction, body and conclusion for each component.
Subheadings are acceptable, point form is not.
• Use 1.5 spacing.
• Use a wide left margin. Markers need space to be able to include their comments.
• Use a standard 12pt font such as Times New Roman, Calibri or Arial.
• Left- justify body text.
• Include a separate title page with your name, student number, subject code, assessment number and assessment question. Include class time and tutor's name if applicable.
• Number your pages (except the cover page).
• Use a header or footer with your name and student number on each page.
• Always keep a copy of your assessments. Both a hard copy and an electronic copy.
• Grammar, spelling and syntax are important. Always use your spelling and grammar checker, but remember that this does not pick up all errors. You must still carefully edit your work. You may find reading your assignment out loud will assist you in identifying and correcting some mistake
Requirements
This assessment requires APA referencing. Marks are specifically allocated both to the consideration of appropriate source material and acknowledging its source through correct referencing. More information on APA can be found at:
http://student.csu.edu.au/study/referencing-at-csu
Assignments must be submitted through Turnitin. Further details about submission are provided in Appendix 1.
Assessment item 3
Final Exam
Value: 60 %
Date: To be advised
Duration: 3 hours
Submission method options
N/A - submission not required/applicable
Rationale
The final exam will be a three hour exam held during the exam period, at the end of the session. There will be 7 questions in the exam, worth 20 marks each, you need to select 5 questions to answer out of the 7 available questions (20 marks x 5= 100). The examination is worth 60%, of your total mark.

Please look at the structure of the sample exam paper and suggested solutions within the Subject Outline. This will give you an indication of the type of questions that you have to answer and the type of answers expected from you.
Requirements
You are required to sit and pass the final exam in this subject to be eligible for a passing grade. The exam is worth 60% of the marks in this subject and you are required to answer 5 out of 7 questions.
Marking criteria
Relevant Learning Outcomes: The examination is designed to assess your ability to:
Critically evaluate attempts to develop and apply a conceptual framework;
Critically appraise the objectives of accounting and relate them to the various concepts of accounting discussed in earlier subjects;
Analyse the possible usefulness of alternative measurement systems to historical cost; Critically evaluate selected current financial reporting and management accounting issues.

Assessment Item - 3 : Final Examination

Criteria High Distinction 85 -100 Distinction Credit 65-74 of Pass 50-64 of
75 - 84 available marks available marks
This essay type demonstrates some basic knowledge and understanding of the theories and the concepts covered in the subject. Content relies on fact rather than personal insight and does not demonstrate the student's personal understanding.

There are only a few aspects identified or discussed and there are limited or no links between elements. Multiple grammatical, spelling and punctuation errors are evident.

Students are The essay type answers The essays The essay type answers required to describe, demonstrate an excellent type answers demonstrate adequate apply, integrate, depth and breadth of demonstrate engagement with the deconstruct and engagement with the clear and theories and the concepts critically analyse a theories and concepts developed covered in the subject. range of issues, covered in the subject. engagement The essays and short concepts and The essay and short with the scripts incorporate theory theories introduced scripts incorporates the theories and and personal insights but in the subject. exploration and linkage concepts multiple aspects needed between elements and the covered in the further exploration and Structure and application of the subject. further linkage between writing style: Is the individuals insights to the The essay and elements. answer concise and topics studied. short scripts lucid or confused? incorporates Paragraphs include
Making it difficult The essays and short theories and relevant information but for the reader to get scripts considered how practical have not been
the point; Is the the theories align with the insights, with constructed well. Few answer essay topics and only some grammatical, spelling
well-structured and demonstrate synthesis of instances and punctuation errors the argument/s theory and accounting requiring are evident. logically developed? practice. The essay clearly further
meets and can be justified exploration or to have met criteria linkage
judgments. All content between that is drawn up is elements. relevant. Paragraphs
All paragraphs are well contain constructed, coherent and relevant well thought out. There information are no grammatical or and are
punctuation errors mostly
constructed well. There are very few grammatical

Material provided by the University
2 X 12 page answer booklet
Material required by the student
Writing implements, including a 2B pencil and an eraser
Appendix 1 Assessment Information
Sample exam
School of Accounting & Finance Examination Session 2, 2015
ACC518 Current Developments in Accounting Thought
EXAM CONDITIONS:
This is a closed book exam
No calculator is permitted
Notes are NOT permitted in the Exam
Bilingual Dictionary permitted (printed copy only, unmarked)
The student may NOT retain the question paper
WRITING TIME: 3 hours plus 10 minutes reading time
Writing is permitted during reading time
MATERIALS SUPPLIED BY UNIVERSITY: 2 x 12 page answer booklet
MATERIALS PERMITTED IN EXAMINATION: As listed in Exam Conditions ( No electronic aids are permitted e.g. laptops, phones )
NUMBER OF QUESTIONS: 7
VALUE: 60%
INSTRUCTIONS TO CANDIDATES:
1. Enter your name and student number and sign in the space provided at the bottom of this page.
2. This is a closed book examination; therefore no written material, reference books or notes will be permitted into the examination room.
3. Answer five (5) of the seven (7) questions.
4. Total marks of this paper equal to 100 and the examination is worth 60%.
STUDENT STUDENT
NAME.................................................................................................................... ID..............................................
SIGNATURE............................................................................................................................

Question 1 THE NATURE, CONSTRUCTION AND VERIFICATION OF THEORIES (20 marks)
(a) Why would it not be appropriate to reject a normative theory of accounting because its prescriptions could not be confirmed through empirical observation? (5 marks)
(b) What is a conceptual framework, and would it be considered to be a positive or a normative theory of accounting? (5 marks )
(c) In the 1960s a number of accounting researchers concentrated on developing theories of accounting based on observing and documenting the behaviour of practising accountants. Do you think that such research is useful in improving the practice of financial accounting? Explain your answer. (10 marks )
Question 2 NORMATIVE ACCOUNTING THEORIES (20 marks)
Explain the following measurement methods together with strengths and weaknesses of each of the following method:
(a)Historical cost accounting (5 marks)
(b)Current purchasing power accounting (5 marks)
(c) Current cost accounting (applying replacement costs). (5 marks)
(d) Continuously contemporary accounting. (5 marks )
Question 3 ACCOUNTING REGULATION AND POLITICS (20 marks)
(a) What expectations do accounting standard-setters have about the accounting knowledge of financial statement readers? (4 marks)
(b) What is a conceptual framework? Argue whether conceptual framework has the potential to defend political interference in standards-setting process. (7 marks)
(c) Outline arguments in favour and against regulating the practice of financial accounting. (9 marks )
Question 4 CRITICAL THEORY (20 marks)
(a) Compare and contrast interpretive and critical perspective. (6 marks)
(b) From a critical perspective, what is the role of a conceptual framework project? (4 marks) ( c) Evaluate the following quote from the Business Council of Australia (2005) from a 'critical perspective':
Given the difficulty defining corporate social responsibility (CSR), as well as the fact that CSR activities are already broadly being pursued in Australia by large corporations, mandating the CSR through legislative intervention runs the risk of stifling the innovative and creative approaches to CSR that are being adopted by Australian companies. (10 marks)
Question 5 INTERNATIONAL ACCOUNTING (20 marks)
(a) In the context of financial accounting, what is harmonisation and standardisation? (4 marks) ( b) Global standardisation of accounting requires the United States to adopt IFRS. In this context please answer the following questions:
( i) Do you think it is likely that the United States will embrace IFRS in the near future for domestic firms? Argue your view based on advantages of adopting IFRS in the U.S. (6 marks)
( ii)What do you think are some of the factors that might discourage the country from adopting IFRS for domestic firms? (10 marks)
Question 6 MANAGEMENT ACCOUNTING THEORIES (20 marks)
Compare and contrast three perspectives of Management Accounting change as outlined by Wickramasinghe and Alawattage (2007) that are rational perspective, interpretive perspective and critical perspective.
Question 7 ENVIRONMENTAL ACCOUNTING (20 marks)
Explain legitimacy theory, stakeholder theory and institutional theory. How would these theories explain corporate social responsibility reporting?
END OF EXAMINATION
Solution to Sample Exam
Question 1 THE NATURE, CONSTRUCTION AND VERIFICATION OF THEORIES (20 marks)
(a) Why would it not be appropriate to reject a normative theory of accounting because its prescriptions could not be confirmed through empirical observation? (4 marks)
ANSWER: Prescriptions are clearly not the same thing as predictions. If, for example, a researcher is prescribing a particular approach to accounting (that is, he or she is being 'normative' in nature) that does not mean when we look at actual accounting practice we will find that the prescribed method is being used. In fact, the reason why the researcher developed a particular normative theory (a theory that prescribes what should be done) could well be driven by the researcher's observation of the inadequate practices currently being employed. For instance, Raymond Chambers developed a theory of accounting (labelled Continuously Contemporary Accounting) which prescribes that assets should be valued on the basis of exit (market) values. He did this on the basis of the perceived limitations of historical cost accounting. The fact that almost all reporting entities used historical cost at the time does not of itself invalidate Chambers' theory.
(b) What is a conceptual framework, and would it be considered to be a positive or a normative theory of accounting? (4 marks )
ANSWER: A conceptual framework, such as the International Accounting Standards Board (IASB) Conceptual Framework for Financial Reporting, provides some fundamental assumptions about the role of general purpose financial reporting and the attributes that financial information should possess for it to be useful in assisting the resource allocation decisions of financial statement readers. As indicated in this chapter, the United States' Financial Accounting Standards Board (FASB) defined a conceptual framework as 'a coherent system of interrelated objectives and fundamentals that can lead to consistent standards'.
Since conceptual frameworks provide perspectives about such issues as: the qualitative characteristics that financial information should posses; the identification of the types of entities that should produce general purpose financial reports; the way in which the elements of financial accounting should be defined and recognised, and so forth (note the emphasis on 'should'), the conceptual frameworks—in providing prescription—are considered to be normative in nature. Positive research, on the other hand, might simply attempt to describe or predict the behaviour of those people in charge of producing general purpose financial reports, or the behaviour of financial report readers
(c) In the 1960s a number of accounting researchers concentrated on developing theories of accounting based on observing and documenting the behaviour of practising accountants. Do you think that such research is useful in improving the practice of financial accounting? Explain your answer. (7 marks )
ANSWER: It can be argued that before we can seek to improve the practice of financial accounting we need to know which methods of accounting are currently being used. Research which describes what is currently being done as well as describing the generally accepted conventions is therefore useful to the overall process of improving financial accounting.
What might not be constructive, however, is where theories are developed through observing current practice and these observations/theories are then used to prescribe what all other people should do.
Just because the majority of people are doing something does not necessarily mean that it is the best or most efficient thing to do. As the chapter emphasises, studying what is does not mean the same thing as studying what should be. As Gray, Owen and Maunders (1987, p. 66) indicate, an approach to developing theories on the basis of observing what is 'concentrates on the status quo, is reactionary in attitude, and cannot provide a basis upon which current practice may be evaluated or from which future improvements may be deduced'.
As the chapter explains, research that provides prescription on the basis of what is already being done does not tend to be very controversial (for example, the work of Grady, 1965) and will not tend to generate opposition from the accounting profession. But again, assuming that what is being done is the best approach (perhaps on the basis that only the 'fittest' survive) is not really logical.
Question 2 NORMATIVE ACCOUNTING THEORIES (20 marks)
Explain the following measurement methods together with strengths and weaknesses of each of the following method:
(a)historical cost accounting (5 marks)
(b)current purchasing power accounting (5 marks)
( c) current cost accounting (applying replacement costs). (5 marks)
(d) continuously contemporary accounting. (5 marks)
ANSWER:
(a) Historical cost
Meaning: Historical cost values assets at their original cost and depreciates over its useful life (Choy, 1996).
Strengths:
• Information generated by the historical cost accounting system seems to be demanded by the market whereas various studies have indicated that price level adjusted information is not in great demand. • It is a generally accepted accounting system, hence maintaining its use will not lead to drastic changes in accounting practice, which in turn could cause a variety of social and economic consequences.
• People are used to preparing and reading historical cost accounting reports, hence there is no need to re-educate them about the strengths and limitations of historical cost accounting.
Weaknesses:
• The assumption that the purchasing power of the dollar remains constant is simplistic and flawed.
• Information generated through historical costs accounting suffers from the 'additivity problem'—it is argued that it makes little sense to add together the costs of assets acquired in different time periods. • Historical cost accounting relies upon arbitrary cost allocations (for example, in relation to depreciation) which may have little correspondence to the actual changes in an asset's values.
• Historical cost accounting can lead to an overstatement of profits in times of rising prices and this overstatement can cause a reduction in the operating capacity of the entity because an excess amount of dividends might be distributed (because historical cost accounting relies upon a financial capital maintenance perspective).
• Historical cost accounting data is of limited relevance to current decisions.
• Historical cost accounting assists an organisation to manipulate its profits given that the decision to dispose of a non-current asset can directly lead to the recognition of gains on disposal, even though those gains actually related to prior periods. The decision to sell an asset might be made in an effort to offset other losses that will be recorded.
(b) Current purchasing power accounting
Meaning: This method, multiplies historic cost of an asset by a price index at the end of the present period and divide by the price index at the time the asset was obtained (Deegan, 2001).
Strengths:
• Current purchasing power accounting is relatively simple and inexpensive to apply and does not require collecting data about replacement costs or market values. Information about movements in general price indices would be easily available.
• Relative to historical cost accounting, it can reduce the possibility of paying excessive dividends, which in turn could reduce the operating capacity of an entity.
Weaknesses:
• It is not generally favoured by the business or professional community and hence any attempts to put it in place could be thwarted.
• Tied to the above point, various studies show there is not a great deal of demand for price-adjusted information.
• People are used to preparing and reading historical cost accounting reports, hence there would be a need to re-educate them about the strengths and limitations of current purchasing power accounting—this might be costly.
• It assumes one price index applies to all assets—this is a very simplistic assumption.
• Because one price index is generally applied to all assets, the adjusted values of the assets may show little correspondence with their actual values (whether this be in terms of replacement or market values).
• Tied to the above point, the reported values may cause some confusion—report users may think that the values represent current values.
• It still relies upon arbitrary cost allocations, for example, in the form of depreciation.
( c) Current cost accounting (applying replacement costs)
Meaning: Belkaoui (2000) defined 'replacement cost' as the amount of cash or cash equivalent that would be paid to acquire an asset or its equivalent at present.
Strengths:
• Relative to historical cost accounting, it can reduce the possibility of paying excessive dividends which could otherwise reduce the operating capacity of an entity.
• If all assets are valued at replacement cost then logically they can be added together; which solves the 'additivity' problem.
• Allows for a separation of holding gains and losses from other results and therefore provides a better insight into management performance.
Weaknesses:
• It is questionable whether replacement costs are reflective of the value of the assets to the particular organisation. Perhaps the organisation if given the option, would acquire alternative types of assets. • Replacement costs do not provide an indication of the asset's current value if the entity decides to sell.
• It will not always be easy to determine replacement costs—for specialised assets the values can be very subjective.
• Implementing current cost accounting requires the entity to go to the expense of collecting information about replacement costs.
• There is not much evidence to support a view that people actually demand such information.
• People are used to preparing and reading historical cost accounting reports, hence there would be a need to re-educate them about the strengths and limitations of current cost accounting—this might be costly.
• It still requires reliance upon arbitrary cost allocations, for example, through depreciation.
(d)Continuously Contemporary Accounting
Meaning: Under 'continuously contemporary accounting' values assets at their selling prices at the balance date (Deegan, 2001; Godfrey, Hodgson, Holmes and Tarca, 2006).
Strengths:
• CoCoA provides information about an entity's capacity to adapt. Chambers considers such information crucial for effective decision making
• It solves the 'additivity' problem—there is a common basis of valuation (net-market values) so it makes logical sense to add the various asset values together.
• There is no need for arbitrary cost allocations through depreciation.
Weaknesses:
• Not all assets will have a readily determined market price—hence a deal of subjectivity will be involved.
• Some assets can generate income within a particular entity, but have little or no value to anybody else (for example, the case of the blast furnace). The 'value in use' of such assets is ignored.
• It values assets on the basis of the separate disposal of the respective assets. The implication of this is that assets which cannot be separately sold are deemed to have no value—for example, goodwill. This attribute of CoCoA has attracted a great deal of criticism.
• CoCoA has never had widespread acceptance within the business community and hence there would be numerous obstacles to its implementation.
• Because CoCoA would represent a radical departure from current methods of accounting, its adoption could cause major social and economic implications.
• People are used to preparing and reading historical cost accounting reports, hence there would be a need to re-educate them about the strengths and limitations of CoCoA—this might be costly.
• If an entity does not expect to sell an asset, it is questionable whether the selling price is really that relevant.
• Tied to the above point, valuing all assets on the basis of selling prices has been criticised if it is considered that the entity is a going concern.
• Determining the market price of unique assets introduces a degree of subjectivity into the accounting process.
Marking scheme
For each part Meaning=1 mark
Strengths= 1 mark each totalling 2 marks
Weaknesses=1 mark each totalling 2 marks
Question 3 ACCOUNTING REGULATION AND POLITICS (20 marks)
(a) What expectations do accounting standard-setters have about the accounting knowledge of financial statement readers? (4 marks)
ANSWER: Accounting standard-setters have an expectation that the readers of general purpose financial reports have a 'reasonable knowledge' of accounting. Specifically, the IASB Framework states that 'users are expected to have a reasonable knowledge of business and economic activities and accounting and a willingness to study the information with reasonable diligence'. Hence, there is an expectation that financial statements are not tailored to meet the needs of people who have not, in some way, studied financial accounting. Students should be encouraged to consider whether this expectation is in itself 'reasonable'.
Marking scheme:
Logical flow and presentation=1.5 marks
Content=2.5 marks
(b) What is a conceptual framework? Argue whether conceptual framework has the potential to defend political interference in standards-setting process. (7 marks)
ANSWER: A conceptual framework of accounting can be considered to be a normative theory of accounting. A conceptual framework makes prescriptions in regards to what the objectives of accounting are, what qualitative characteristics general-purpose financial information should possess, how the elements of accounting should be defined and when they should be recognised and how the elements of accounting should be measured.
Within the United States, the conceptual framework has been defined as 'a coherent system of interrelated objectives and fundamentals that is expected to lead to consistent standards'. It is further stated that the conceptual framework 'prescribes the nature, function and limits of financial accounting and reporting' (Statement of Financial Accounting Concepts No. 1: Objectives of Financial Reporting by Business Enterprises, 1978). Within Australia, the conceptual framework was initially considered to consist of a series of Statements of Accounting Concepts with the various statements defining the nature, subject, purpose and broad content of general-purpose financial reporting in the private and public sectors (Policy Statement No. 5: The Nature and Purpose of Statements of Accounting Concepts). In 2005 there was a change within Australia with the conceptual framework thereafter being comprised of part of the pre-existing Australian Conceptual Framework (Statement of Accounting Concepts 1 and 2 were retained, and Statements of Accounting Concepts 3 and 4 were abandoned) as well as the IASB Framework for the Preparation and Presentation of Financial
Statements. (4 marks)
The AASB conceptual framework states the objectives of financial statements that is to meet the common needs of most users and qualitative characteristics of 'understandability,' 'relevance,' 'reliability' and 'comparability' providing basis on which each reporting standards are based. This provides a platform for suggestions in regard to reporting standards minimising political interference in setting reporting standards. (3 marks) Marking criteria:
Conceptual framework: Explaining the purpose of the framework (2 marks) and additional explanation such as mentioning qualitative characteristics (2 marks). Potential to defend political interference: 3 marks
( c) Outline arguments in favour and against regulating the practice of financial accounting. (9 marks )
ANSWER: Some of the arguments in favour of regulating the practice of financial accounting are provided in the text and include the following:
• Markets for information are not efficient and without regulation a sub-optimal amount of information will be produced.
• While proponents of the 'free-market' approach may argue that the market on average is efficient, such on average arguments ignore the rights of individual investors, some of whom can lose their savings as a result of relying upon some unregulated disclosures.
• Those who demand information can often do this as a result of power over scarce resources. Parties with limited power (limited resources) will generally be unable to secure information about an organisation, even though that organisation may impact upon their existence.
• Investors need protection from fraudulent organisations that may produce misleading information, which due to information asymmetries, cannot be known to be fraudulent when used.
• Regulation leads to uniform methods being adopted by different entities, thus enhancing comparability.
There was also a view that major adverse events such as the Great Depression, and more recently, collapses such as Enron, WorldCom and HIH, were due to the fact that financial information being provided about particular entities was misleading and did not enable readers to be aware of impending problems. Whether a 'better' system of accounting could have reduced the likelihood of events such as the Great Depression or unexpected corporate collapses is however, a highly debatable point.
Arguments against regulation are often referred to as 'free-market' arguments. Advocates of a 'free-market' approach typically base their arguments on an assumption that markets (such as capital markets, labour markets and product markets) are efficient and that the markets will provide various incentives and penalties to ensure that managers, on average, do as the market expects. For example, if the capital market expects an entity's managers to provide information and the managers elect not to, th