Accounting Theory and Current Issues

Accounting Theory and
Current Issues

Contents
INTRODUCTION.......................................................................................................................................3
QUESTION 3- Week 3...............................................................................................................................3
Provide journal entries necessary to account...........................................................................................3
QUESTION 2 – Week 5..............................................................................................................................5
Fair value of lease assets.........................................................................................................................5
QUESTION 2 – Week 6..............................................................................................................................6
QUESTION 3 – Week 9..............................................................................................................................8
(a) Basic EPS amount..............................................................................................................................8
QUESTION 3 – Week 10............................................................................................................................9
a. Exchange rates.....................................................................................................................................9
b. Prepare the journal entries...................................................................................................................9
QUESTION 3 – Week 11............................................................................................................................9
(a) Term of CSR......................................................................................................................................9
(b) Legitimacy of companies.................................................................................................................10
CONCLUSION.........................................................................................................................................11
REFERENCES..........................................................................................................................................12

INTRODUCTION
Accounting theory is a collection of concepts, structures and techniques used in the
analysis and implementation of financial reporting concepts. An analysis of both the traditional
principles and accounting standards in the manner of accounting practices which are altered and
applied to the legislative system. The regulating financial statements and financial reports are
subject of the research of accounting theory (Croes and Rivera, 2017). A guideline for efficient
accounting and auditing is given by accounting theory. The theory of accounting encompasses
the premises and techniques used in financial statements, including an analysis of accounting
rules and the review regime. In present time organizations face different issues in accounting like
tax cuts, traditional accounting and many others that impact on the business in adverse manner.
In this report consist of different questions related to accounting theory and related issues.
QUESTION 3- Week 3
Provide journal entries necessary to account
On 30th June, 2020:
Machine Cost: $650000
Accumulated Depreciation: $110000
Value after Revaluation: $450000
Useful Life of machine: 5 year
Residual Value: $50000
On 1st July 2023
Fair Value of Machine: $460000
Computation of value of machine and revolution effects:
Machine Cost 650000
Less: Accumulated 110000

Depreciation
540000
Revalued At 450000
Decrease in value due to
revaluation
90000
Depreciation during period 2022-23 = (450000 - 50000) / 5 = 80000
Value as on 1st July after depreciation = 450000 – 80000 = 370000
Fair Value As on 1st July 2023 = 460000
Increase in Value of Machine = 90000
 The depreciable amount is the value of an asset, or another cost-replacement number, less
its variable cost.
 The systematic distribution of the accumulated depreciation of an intangible asset is
depreciation (Fisher and Aguinis, 2017).
Date Particulars Dr. Cr.
30-06-2022 Machinery 650000
Cash at Bank 650000
30-06-2022 Depreciation 110000
Accumulated Depreciation 110000
30-06-2022 Accumulated Depreciation 110000
Machinery 110000
30-06-2022 Revaluation 90000
Machinery 90000
01-07-2023 Depreciation 80000
Accumulated Depreciation 80000