Accounting Theory

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3101AFE Accounting Theory and Practice
INDIVIDUAL RESEARCH ASSIGNMENT
Trimester 1 2017

A. OVERVIEW
Students will be presented with several news articles that demonstrate issues of relevance to accounting theory.
Students will choose one of those articles and evaluate the article using and applying the most appropriate
accounting theory relevant to the article they have chosen.
Assignment Due Date: Friday 12th May at 2.00pm
Weighting: 20%.
Word Length: Part A = 100 words. Parts B and C combined = 500 words (excluding the 100 word

summary) with a 10% leeway.

Marking criteria The rubric indicates how you will be marked (see page 4).

B. REQUIREMENTS
THE SUBMISSION MUST BE TYPED, SINGLE-SPACED, AND APPROPRIATELY REFERENCED
1) ACCOUNTING THEORIES
 Select an accounting theory that is relevant to the article. Use only ONE theory for your chosen article.
 DO NOT invent a theory – you MUST only use the theories listed on page 5 of this document.
2) ANALYSIS/REPORT
 A word count MUST be included at the end of each section of your report, plus an overall word count
must be given at the end of the report.
 For the article, apply the chosen accounting theory in a report style format:
 Title of the Article and Article Reference Number (as shown in this document) DO NOT reproduce the
article which you select from this document– include only the title and article number of the article.
 Then, the four sections of your report, each with a word count at the end:

1. Summary (Part A):
– Summarise the article within a maximum of 100 words. Do not refer to the
appropriate theory in this section. The article summary should clearly conveys the
article's substance as it would pertain to Accounting Theory without referring to
Accounting Theory).
2. Accounting Theory (Part B):
– Identify and briefly describe the accounting theory that you will be using in this
analysis. Use appropriate references. (Suggested word count = 100 words)

3. Analysis (Part C):
– Provide an analysis and application of the relationship between the theory and the
newspaper article. Show how the facts of your article are directly related to the
accounting theory chosen. Use references to support your arguments. (Suggested
word count = 350 words)

4. Conclusion:
– Provide a brief conclusion. (Suggested word count = Maximum 50 words)

3) REFERENCING
 A list of references used should be presented at the end of the report. (see GBS Resource Bank – link
available on L@G)
 The report should contain normal academic referencing and reference sources. Ensure all sources of your
discussion are acknowledged/referenced.
 You MUST NOT refer to or use as a reference source EITHER the Deegan textbook OR your WORKSHOP
Notes/PowerPoint slides IN YOUR REPORTS. Failure to follow this instruction will result in marks being
deducted.

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4) COMPILATION OF THE ASSIGNMENT
Please compile the assignment in the following order:
 Individual assignment cover sheet – please ensure:
o Your name and student number are clearly written
o That the ACADEMIC INTEGRTY DECLARATION IS FULLY COMPLETED AND SIGNED
 A title page
 RUBRIC: Criteria Sheet (on page 4 of these instructions).
o PLEASE ENSURE YOUR NAME and STUDENT NUMBER is on the CRITERIA SHEET as well as on the
assignment cover sheet.
o PLEASE UNDERLINE YOUR FAMILY NAME and put your family name in CAPITALS.
 Assignment Report and Reference List
5) SUBMISSION OF THE ASSIGNMENT
The assignment is to be submitted THROUGH SAFE ASSIGN at Learning@Griffith under the ASSESSMENT
folder where it says: ‘This is the Link where you will submit your Research Assignment’.
In order to create only one Word file (Safe Assign does not accept pdf files), students need to copy and paste
the Individual assignment cover sheet and the RUBRIC criteria sheet.

IF YOU DO NOT FOLLOW THESE INSTRUCTIONS, YOU WILL LOSE MARKS FOR PRESENTATION.

OTHER POINTS TO NOTE and RESOURCES AVAILABLE TO ASSIST IN MAXIMISING MAKS
1. SPELLCHECK (English) and GRAMMAR check must be run prior to submission. Ensure you use English
(Australian). You will lose marks if you use AMERICAN.
2. There are Links to Assignment writing resources on L@G under the GBS Resources Bank folder and also in the
Assessment/Assignment folder.
3. There are ‘Assignment Clinics’ available at the Libraries– refer to the Learning@Griffith course website for a
list of days/times available at both Gold Coast and Nathan campuses.
4. An Exemplar will be posted on Learning@Griffith by the beginning of Week 4

**You should refer to the Learning@Griffith website for penalties for late submission**

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ACCOUNTING THEORIES

LECTURE TWO + WORKSHOP TWO
 Public Interest Theory
 Capture Theory
 Private Interest Theory (Economic Interest Group Theory)
LECTURE FOUR + WORKSHOP FOUR
 Efficient Market Hypothesis

LECTURE FIVE + WORKSHOP FIVE
 Legitimacy Theory
 Stakeholder Theory – Ethical (moral) branch OR managerial branch

LECTURE SIX + WORKSHOP SIX
Positive Accounting Theory
 Positive Accounting Theory – opportunistic perspective OR efficiency perspective
 Political Cost Hypothesis
 Management Bonus Hypothesis – opportunistic perspective AND/OR efficiency perspective
 Debt Hypothesis – opportunistic perspective AND/OR efficiency perspective

Description

The International Accounting Standards Board has come up with new regulations that will help investors to have a clearer picture of a company’s debt (Mitchel, 2015). These guidelines were issues in response to public outcry about poor accounting practices that had led to collapse of corporations like Enron. Under the new guidelines, IASB was leading retailers to bring leases into their balance sheets for the first time. They are required to calculate the new present value of any future lease commitment and ensure that they are recognized as debts in their balance sheet.

Words: 92