Financial Management

Page 3 Page 7 Page 12 Page 17 Page 20 Positive Accounting Theory Ethics in Accounting Accounting for Physical Assets & Intangible Assets Accounting for Assets in Mining & Agricultural Industries ounting Accounting for Provisions

S., & Hassan, M. K. (2012). The domination of financial accounting on managerial Commerce & Management, 22(4), 306-327. doi:10.1108/10569211211284502

1. Discuss the nature of stock as an investment. Do most stockholders play large roles in the management of the firms in which they invest? Why or Why not?

‘Conflicting perspectives are the result of individual desires. Manipulation and distortion are used in the attempt to achieve a desired end.’

Advantages- Less liability for stakeholders. Ability to raise funds/capital in the form of stocks as needed.

“It was enjoyable to see the different point of view not only from different races, but from different genders and different generations.”

To over view the knowledge we learnt from accounting theory and practice, the main thing I can conclude that is the tendency of accounting will shift away from technical way to people’s behaviour way. By understanding what should do, we should ask why and how we could improve and change it into a better way. This essay aims to explain how the theoretical material that we learn in lectures can be developed under a real practical manner.

The benchmark of the validity of the findings of a study is evident in the research

Positive accounting theory (PAT) offers one such attempt to make accurate predictions regarding real world events as captured by accounting transactions and to explain why firms choose between various accounting techniques. PAT attempts to explain a firm's choice of accounting methods on the basis of self-interest. PAT also provides a framework for

This statement presents the value that reflects to others’ that researchers are a trying to understand the way people, things, and interaction(s) act or counteract the study in motion. That is the meaning of their research. In the terms of research, it is not all necessity to prove one fact, but to resurface any variable in most cases that may stagnate any one position. In another direction, I sense that statement kind in a way to deter people.

The classical tax system is arguably the easiest type of taxation to an extent that it's internationally neutral (Terra & Wattel, 2008, p.105). In this tax system, foreign profits, dividends and shareholders are treated in the same way as domestic profits, shareholders, and dividends. The classical tax system is where a company pays taxes on its taxable income since it's considered separate taxpayer legal entity ("Advantages and Disadvantages", n.d.). The dividends paid by a firm to shareholders are taxable to the shareholders as property income. Some of the countries within the OECD region that use the classical tax system include the United States and the Netherlands.

This paper is a contribution made my Ross L. Watts and Jerold L. Zimmerman, titled as “Towards a Positive Theory of Determination of Accounting Standards” published by American Accounting Association. It explores the factors that have been influencing management’s attitudes in lobbying on accounting standards. It describes an attempt made by two in evolution and development of the Positive Accounting Theory by reasoning, factors like taxes, regulations, management compensation plans, book keeping cots, etc. The results concerned with the theory are consistent.

What type of explicit restriction would you have wanted if you had been one of the original bondholders?

Positive accounting theory is a form of motivation to the managers of the entity’s that enable managers to choose between accounting methods inorder to achieve the required reports or objectives.

Before 1970s, most of accounting research were based on deductive-normative – and not positive – approach. The biased perspective of accounting journals of the time were so prevalent that they did not accept articles of positive approach for a long time. In the late 1970s and early 1980s, a new type of theory was introduced and was based on a new research method which had been conducted by the accountants in the “Rochester High School of Accounting”. This new theory was called "Positive Accounting". Positive accounting was not only developed rapidly but also achieved prevalent rule in accounting journals. Despite the field of finance, positive accounting research projects were not based on their own theories, but on neo-classical economic theories,