Accounting Theory for Liability and Equity - MyAssignmenthelp

The accounting academics, as well as the developers of accounting standards, have tried to build a conceptual framework for counting, which gives a certain statement about the characteristics plus the objectives of financial accounting along with reporting. Besides this, the framework of accounting can be used as the guideline and guide all the accountants in entire accounting practices. The accounting firework can be useful as it can provide a firm theoretical base in order to provide a cogent explanation about the accounting as well as it helps in making the accounting process logical for the students (Appannaiah, Reddy & Putty, 2010). The main aim of the conceptual framework is to provide the guideline to the accountant throughout the preparation as well as the presentation of the common purpose of financial reports within the public as well as private sectors. The conceptual framework for accounting has the objectives to give a fundamental conception or theory for the accounting. The conceptual framework of accounting helps in detecting as well as defining the qualitative features of the financial information like reliability, relevance, comparability, timeliness, plus understandability. Furthermore, the conceptual framework can help in recognizing and defining the fundamental elements of accounting like assets, liability, equity, income, revenue, expenses as well as profit.  Ã‚   At the low level, it deals with the principles as well as the basic rules for the detection and assessment of the key elements (Britton & Waterston, 2013). It also helps in identifying the information types which would be displayed in the financial reports. However, the attempts to make the radical change by introducing a conceptual framework SAC 4 have failed. The essay is an attempt to explore the reason behind the failure of SAC 4.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The financial statements of a company should provide the appropriate value of the company. The accountants and auditors should focus on the fair representation of the financial statements. The errors or omissions in the financial statements can lead to the increase or decrease in the value of the company. The income, expense, assets and liabilities should be clearly and fairly stated in the financial statements. Both the FASB and IASB framework considers the objective of the financial reporting is to fairly communicate the financial information to the users. The financial information should be based on the usefulness in the decision-making process. The development of conceptual framework has been a lengthy and complicated process (Holton, 2012). The present focus is on the qualitative characteristics and objective of the financial reporting. The companies should focus on the true and fair view of the company. It has been argued by many people that the previous conceptual framework in cludes the measurement based on the unspecified rules, there is no previous agreement on the objective, logic is circular, and definitions of elements are not workable and also do not provide guidance to the practicing accountants. They have also argued that the previous agreement is not important and also lead to the mechanical decision making. Imprecise and loose definitions and logic can indicate that the accounting is in the pre-science phase. The criticism focuses on the epistemological and ontological assumptions. Thus, accounting can never be unbiased and neutral (Holtzman, 2008). The accountants and auditors play a significant role in depicting the reality and showing the fair value of all the financial items. The material misstatements should be determined that can affect the interests of the shareholders. Apart from this, some people stated that the conceptual framework based on self-interest and professional values. The motivation is to increase the economic through the m onopoly behavior and have gained the social power and acceptance. The accounting professions have to maintain its position and manipulating the attempts at the public regulations. The existence of conceptual framework has increased the conceptual debate level in the standard of setting the process of lobbying. It provides guidance to deal with the problems that are not yet the subject of the accounting standard. The accountants and auditors should provide clear true and fair view of the financial report of the company (Jackling, 2010).   Ã‚   The framework of the study is surrounding the issues which are established by showing the provision of the accounting framework as it is being established by showing the provision of the SAC 4 framework. This is simply explained the benefits and the decrement of the values of the liabilities as it is being provided in the form of the definition of the standards. The FASB statement is showing the financial accounting concepts which are showing the (SAC 4) framework as is being considered for the external reporting as the development of the objectives is considered (Powers & Needles, 2012). The information provided by the standards are showing the establishment of the information which is generally useful for illustrating the usefulness of the information which is beneficial for the purpose of presenting the potential information to the investors and also the creditors. In another way, the rationale established is showing the presented of the selected reporting which enables in showing the appropriate communication process as it is helpful for undertaking the decisions. The framework is also depicted to be surrounding the following objectives that can be achieved by this framework which is enlisted in the following points:- As per the objectives are concerned, these are depicted to be showing the useful financial information’s, but the principles are apart helping in transmitting the information that is necessary for the development of the hierarchy of the qualities. Therefore, the principle characteristics can be easily determined by showing the appropriate, useful information which is showing the complete structure as it is mentioned in the SAC 2. The hierarchical arrangement of the objectives is also showing the ability to the information which is being used for showing the understandability that simply defines the structures of the work (Roode & Leith, 2009). The hierarchy of the work is also presenting the quality measurements which are influencing the financial and the economic decisions as it is shown to be reliable in nature. Thus the material losses can be easily explained by showing the material bias and also the error can be easily categorized. This simply explains the failure of the s tandard SAC 4 for which the inappropriate determination of the values is defined. Since the explanation is also identifying the inappropriate conduct made by the implementation of the framework, then the establishment of the issue is being depicted in the form of showing the removal of the SAC 4 and also the inappropriate transactions are seen in this case. The removal of the issue is becoming the vital reason as it is being explained in this case and also the downfall of the organizational events can be seen by the implementation of this framework (Weil, 2017). These are the issues which are identified in this case and also it is seemed to be leading to the failure of the act as it is being explained in this case. As per the presentation of the work is being made, the errors in the estimations are more as it is being indicated by the implementation of the SAC 4 standard. The inappropriate raising of the issues in the business transactions are identified to be the vital reason for the development of the barriers and also the event destruction is clearly seen in the organizational development. For this reason, the SAC 4 is being removed which is showing the vital cause of the formation of the issues in the organization (Wolf, 2010). There are some archived statements of the accounting concepts such as the SAC 3 as well as SAC 4 were useful until the initial reporting period initiating on or afterward 1 st Jan. 2005, while this specific framework intends for the creation plus presentation of the financial statements according to the AASB the Australian equal to the international IASB framework.  Ã‚  Ã‚   The are several people criticizing the conceptual framework of SAC 4, which help in recognizing and defining the fundamental elements of accounting like assets, liability, equity, income, revenue, expenses as well as profit.   The main issue of this conceptual framework is measurement as the rules for the measurement are not specified in this conceptual framework. Besides this the logic behind the framework is spherical and there is not any previous agreement on the objectives. Apart from this, the definitions of the accounting elements are not workable as well as do not provide any guidance for practicing accounts.  Ã‚   Appannaiah, H., Reddy, P., & Putty, R. (2010).  Financial accounting. Mumbai [India]: Himalaya Pub. House. Britton, A., & Waterston, C. (2013).  Financial accounting. Harlow: Financial Times Prentice Hall. Holton, R. (2012).  Global finance. Abingdon, Oxon: Routledge. Holtzman, M. (2008).  What's new in financial reporting. Florham Park, N.J.: Financial Executives Research Foundation. Jackling, B. (2010).  Accounting. North Ryde, N.S.W.: McGraw-Hill Education. Powers, M., & Needles, B. (2012).  Financial accounting. [Mason]: South-Western, Cengage Learning. Revsine, L., & Mittelstaedt, F. (2017).  Financial reporting and analysis. Dubuque: McGraw-Hill Education. Roode, M., & Leith, K. (2009).  Financial reporting. [Pretoria]: [Salt and Pepper]. Weil, R. (2017).  Financial accounting. [Place of publication not identified]: Cengage Learning. Wolf, M. (2010).  Fixing global finance. Baltimore, Md.: Johns Hopkins University Press.

Bioethics Essay Example | Topics and Well Written Essays - 2500 words

Bioethics - Essay Example We have to listen to all sides in order to get a wider idea of the complexity of this debate. But we also have to be firm in our position once we have reached a sound and factual conclusion. That way we avoid any kind of hypocrisy, and there will not be any double talk in our grasp of the issues at hand. Scientists, lawyers, policymakers, theologians, ethicists, and lay people have something to say about this matter. Many have spoken their minds raising up high their heated arguments. All of them have the right to give their opinions, and we will listen to some of them as we move forward up to our concluding words. We have to keep in mind the fact that at the end God is the centre of the debate. According to the position that we might defend, human freedom of choice becomes an alibi for behaving as we please, or it is the subject of a higher dimension in the eyes of God. When dealing with new reproductive technologies, we should study the bioethical aspects of such new instruments of Science. The mere production of spare embryos as well as their use for scientific research raises some serious bioethical questions that need to be answered. Just from the natural point of view, we have arguments in favor of showing respect for any kind of embryos, even if they are classified as "pre-embryos". C. W. Kischer gives us some useful information about the idea behind the term "conception", and its relationship with the beginning of human life: ""When animal experiments were done in the 18th and 19th centuries, deductive reasoning led to the conclusion that life began at conception; and, finally, this was observed directly by the first in-vitro fertilization procedures with human gametes some 40 years ago" (Kischer 2002). Following this kind of reasoning -not taking God into account, just from the natural point of view- Kischer arrives to this conclusion: "We should respect a microscopic human embryo because at that time it is an integrated whole organism, just as the human is at every moment in time until death. Every human embryo deserves as much respect as you or I because it is formed as a new individual human life within the continuum of life as a manifestation of NATURAL LAW!" (Kischer 2002) (Kischer's own emphasis in capital letters). Kischer speaks about a "continuum of life", and there are three different opposing views on this idea as R. Hoedemaekers explains in detail. He states that there are three fundamental positions with regard to the moral status of a new unborn human life: the first one is "continuity in development", and this view gives personhood to the embryo from the very beginning, that is, from conception, with the same degree of value and dignity as a human being; the second one is "discontinuity in development", and this position treats the embryos from two different angles, first as a property at conception, and much later as a person, depending on the age in development; and the third one is "incremental or gradual development" that assigns a lesser to a greater degree in personhood to the

DiscussionAnalyzing Cost of Capital Essay Example | Topics and Well Written Essays - 250 words

DiscussionAnalyzing Cost of Capital - Essay Example In order to reduce this and attain an optimum capital structure the firm needs to determine the combinations of equity and debt that minimize the W.A.C.C. The effective use of that capital should also be considered, as there would be no need of accumulating large amounts of capital without necessary considerations of the projects that are supposed to be undertaken. The company should also consider the cost of raising the particular capital that it deems appropriate. This is measured by the marginal cost of capital. . To obtain finance a company will pay implicit costs which are commonly known as floatation costs (Rosemary, 2012). These include: Underwriting commission, Brokerage costs, cost of printing a prospectus, Commission costs, legal fees, audit costs, cost of printing share certificates, advertising costs etc. For debt there are legal fees, valuation costs (i.e. security, audit fees, Bankers commission etc.). The company needs to determine the combination of capital items that will minimize to a large extent the marginal cost of capital (M.C.C). The company also needs to consider leverage. This is the amount of debt used to finance a firm’s assets. A firm with significantly more debt than equity is considered to be more leveraged. A high degree of leverage increases the financial risk the company faces, as it may not be able to refinance such debt, leading to insolvency (Rosemary, 2012). An optimum capital structure needs has lower amounts of financial risk and sustainable levels of