'DEVELOPING CONCEPTUAL FRAMEWORKS ARE A TIME WASTING ACTIVITY' - Essay Example

Only on StudentShare

Extract of sample
'DEVELOPING CONCEPTUAL FRAMEWORKS ARE A TIME WASTING ACTIVITY'

The financial accounting theory functions on the basis of conceptual framework, explains the observed accounting practices and predicts the unobserved practices. The theoretical framework of accounting evolved significantly in the 20th century following the market crash in 1929 and recent financial crisis. The major accounting theories, developed in 20th century are Efficient Market Hypothesis (EMH), fundamental analysis model, CAPM, positive accounting theory and critical perspective model. These theories were criticised by SATTA (Statement of Accounting Theory & Theory Acceptance) giving the reasons why these theories could not gain general acceptance. The main points of criticism were real world complexity, varying requirements of user groups, and failed interpretation of security price behaviour through EMH, costs of adopting accounting standards more than the benefits and limited capacity of users in assimilation and analysis of accounting information. Further, to understand the implications of conceptual framework example of the joint project of IASB and FASB for the convergence of their respective conceptual frameworks is discussed. ...Show more

Summary

DEVELOPING CONCEPTUAL FRAMEWORKS ARE A TIME WASTING ACTIVITY Contents Contents 2 Introduction 3 Conceptual Framework 4 Financial Accounting Theory 4 Conceptual Framework for Financial Accounting 7 Conclusion 9 References 9 Introduction This paper critically evaluates the conceptual frameworks in the context of financial accounting theories…
Author : lgutkowski
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"'DEVELOPING CONCEPTUAL FRAMEWORKS ARE A TIME WASTING ACTIVITY'"
with a personal 20% discount.
Grab the best paper

Related Essays

US GAAP IFRS Convergence
The research demonstrates that the manner in which the FASB, IASB and the SEC have been working towards achieving convergence between the US GAAP and IFRS is indeed questionable. Despite several delays, there appears to be commitment between both sides to achieve a universal accounting framework at the earliest.
9 pages (2250 words) Essay
The reasons why the FASB and the IASB seeking to converge and improve their respective conceptual frameworks and why the project will take along time to complete.
FASB and the IASB. Both the boards have their own accounting standards, but due to enhanced globalization, both the boards have taken substantial steps in convergence of the accounting standards. Following are some of the reasons for the convergence of accounting standards.
10 pages (2500 words) Essay
LDAP
Thus, this wonderful aspect directed software corporations like that IBM, Microsoft, Netscape and Lotus to maintain a standard which is now acknowledged as LDAP (Lightweight Directory Access Protocol). Lightweight Directory Access Protocol or simply LDAP is a software protocol which is used to allow anyone to trace companies, workers or staff, and various other resources for instance files, documents and devices which are connected a network, on the open Internet as well as on an organizational intranet.
8 pages (2000 words) Coursework
Explain how the financial difficulties faced by the Irish and Greek governments have impacted on Euro debt markets
Majority of Western European states have higher GDPs and living standards whereas many of the Eastern Europeans economies are still struggling to attain an improved growth rate. The recent European sovereign debt crisis negatively affected the Europe’s economic status.
3 pages (750 words) Essay
Financial Accounting Theory
A conceptual framework is developed from the existing theories. Based upon this an exploratory research is done and along with the subjective belief on the concerned topic a conceptual framework is made by the researcher. Several theoretical frameworks are made after the financial crisis of 1929 and also after the recent financial crisis.
6 pages (1500 words) Essay
Developing a conceptual framework is an impossible possibility
It is a constitution, a logical system of interrelated goals and fundamentals that can lead to consistent standards and that prescribes the nature, functions and limits of financial accounting and financial statements (Chambers, 2009 p. 14). Conceptual framework attempts to harmonize the various ideas and concepts of different accountants and even of the accounting bodies.
7 pages (1750 words) Essay
Developing a conceptual framework is an impossible possibility
Accounting plays a significant role in a business entity; it is prepared by the company to inform the public of the company’s performance and progress, which attracts more potential investors to the company to inject more capital and enhance the growth of the enterprise (Deegan and Unerman, 2009).
7 pages (1750 words) Essay
Developing a conceptual framework is an impossible possibility
The conceptual framework provides guidance on the boundaries of financial accounting and other events related to it. The accounting conceptual framework was developed as early as 1970s. The Financial Accounting Standards Board (FASB) is in charge of developing and reviewing the frameworks.
6 pages (1500 words) Essay
Developing a conceptual framework is an impossible possibility
It is the main persistence behind the development of accounting principles. The framework act as a backbone to the US based accounting standard GAAP (Generally Accepted Accounting Principles) for evaluation of existing and new development in accounting standards.
8 pages (2000 words) Essay
Panera Bread attestation planning memo
When a company has a lousy reputation, its accounts payable rise more than the revenue the company generates from the services it offers. This is because, few customers subscribe to this company and, therefore, the expenses
4 pages (1000 words) Research Paper
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT