logo

Advanced Financial Accounting - Capture Theory (PDF)

   

Added on  2021-05-30

11 Pages2598 Words21 Views
 | 
 | 
 | 
Running head: ADVANCED FINANCIAL ACCOUNTINGAdvanced financial accountingName of the student:Name of the university:Author note:
Advanced Financial Accounting - Capture Theory (PDF)_1

1ADVANCED FINANCIAL ACCOUNTINGTable of contentsAssessment Part A......................................................................................................................2Assessment Part B......................................................................................................................3Public Interest Theory................................................................................................................3Capture Theory...........................................................................................................4Economist interest group theory of regulation...........................................................5Assessment Part C......................................................................................................................6Part A: Exemption from re-valuing the assets...........................................................................6Part B: Impact of the decision not to revalue the assets of financial statements........................7Part C: Impact on the shareholders............................................................................................8References..................................................................................................................................9
Advanced Financial Accounting - Capture Theory (PDF)_2

2ADVANCED FINANCIAL ACCOUNTINGAssessment Part AThe article, “Unwieldy Rules Useless for Investors”, the audience get an insight intothe critical approaches towards financial accounting standards and IFRS. The article enhancesthe awareness of the audience regarding the reasons behind this critiquing approach.Guidance towards investments is one of the major objectives of financial reporting. Thissupport helps in assessing the sources through which the cash would flow from the internalenvironment to the external (Hoyle, Schaefer and Doupnik 2015). Consciousness in theseactions is also assistance towards excavating the necessary changes, which needs to bebrought about in the business operations. Relevance is one of the essential qualitative characteristics of framework related tofinancial reporting. Relevance establishes accuracy within the aspect of financial reporting.This accuracy, in turn, helps the investors in taking the decisions related to the investments.Comparing the gathered value with the estimated value makes the investors aware of thesimilarities and differences. The similarities and differences helps in clarifying the clientsabout the achievements in the financial year (Robson, Young and Power 2017). Faith is an important component for reporting the financial matters and statements.This is in terms of maintaining the stability in the relationship with the stakeholders. Forreducing the arrears in the financial statements, this faith proves faithful. Prudence acts as asaviour in the process of making judgments in an ambience of uncertainty. Time managementenables the investors to take appropriate decisions with due consideration of the needs,demands and requirements. Within this, focus needs to be on the grasping capability of theusers. Negligence in this direction would add negativity into the task of financial reporting.
Advanced Financial Accounting - Capture Theory (PDF)_3

3ADVANCED FINANCIAL ACCOUNTINGUnsatisfactory results achieved by the respondents of the article add an interrogativeparameter to the practices adopted for reporting financial statements (Macve 2015). IrrelevantIFRS adjustments create discrepancies, aggravating the complexities of the investorsregarding the reporting of financial statements. Irrelevance in the financial statements hasmade the comparison process difficult for the companies and organizations. Incapabilitytowards making the investments has increased the instabilities in the financial parameter. Conceptual framework helps in gaining an insight into the approaches towardsfulfilling the identified objectives related to financial reporting. Inclusion of the objectiveswithin the conceptual framework aids in evaluating the approach towards serving thestakeholders (Ghanbari and Sarfia 2016). Development of this framework helps in assessingthe feasibility of the plans in terms of the specific tastes and preference of the stakeholders. Assessment Part BPublic Interest TheoryA.C. Pigou proposed the public interest theory in the year 1932. It deals with thesensitive nature of the markets. This sensitivity is a deviation from the usual functions, whicha market needs to perform. Here, the focus is on the needs of the buyers rather than socialwelfare. Government intervention is crucial in terms of manage the market operations.Legislations are crucial for mitigating the wrong means for carrying out the marketing tasks.Complying with the standards and codes of these legislations assists the marketers to cater tothe public interest (Dutta and Patatoukas 2016). This aspect contradicts the true essence ofthis theory. Social welfare is the main duty of the regulatory body, which includes preventionof the malpractices, which destroys the true purpose of marketing.
Advanced Financial Accounting - Capture Theory (PDF)_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Advanced Financial Accounting and Reporting (PDF)
|12
|2615
|34

Advanced Financial Accounting - Sample Assignment
|12
|2872
|29

Finance Assignment Solution - Doc
|10
|1986
|47

Advance Financial Accounting : Doc
|12
|2843
|26

Importance of Financial Reporting and Impacts of Asset Revaluation
|12
|2794
|73

Criticism of Current Reporting Practices and Theories of Corporate Activities
|7
|1519
|70