Current Development in Accounting Thought

Current development in accounting
Thought

Contents
Introduction......................................................................................................................................3
Main body........................................................................................................................................4
Question 1....................................................................................................................................4
a)..............................................................................................................................................4
b)..............................................................................................................................................4
Question 2....................................................................................................................................7
Question 3....................................................................................................................................9
References......................................................................................................................................11

Introduction
The term accounting theory is considered to be one of the most important term that includes
formation of accounting related standards. An appraisal for the development of accounting
theory and practice can be done by the standard setters. There are general agreements that are
made by the accounting standard setters as this helps in formation of various policies for the
business organisations. This is seen that conceptual framework project helps in development and
improving the standards for the future so that they are able to achieve the objective of
maximising the performance (Brouard, et. al., 2017). This report is based on the performance
current development of the accounting thought and standards in the country. This report would
help in getting information about what are the advantages and benefits that are claimed by the
standard setters and what are the support that they are getting for the conceptual framework
projects. While the fair value or the historical cost would be considered for the purpose so as to
identify the AASB framework. At last historical cost accounting method would be analysed for
the purpose of the study.

Main body
Question 1
a)
The development of the conceptual framework has been done since the early twentieth century
and for this context a disciplined setup has been considered to set up the accosting standard. The
financial accounting standard board’s conceptual framework for the accounting project was
completed in the year 1986 which cost around ten years efforts. Hence there are various
advantages which are claimed by the standard setters for advancement of framework of the
projects (Ellwood & Newberry, 2016). The group of standard setters are considered to be the
government of the country, the accounting professionals and the organisation in the different
countries gets benefited from the advancement of the conceptual framework projects. These can
be classified as below:
 The conceptual framework provides a means of the communicating the key concepts to
the professional reporters and accounting professionals. These helped in getting the
guidance so as to report to the entities where no specific standard has been set by the
setters.
 As this is seen that many countries has adopted the IASB conceptual framework hence
this can be said that international compatibility can be achieved between various
countries through this framework. Though this the comparison can be made at a greater
instance so as to achieve the objective of maximising the performance.
 It is also seen that the issues which relates to objective of financial reporting, recognition
criteria has been made through the process of developing the conceptual framework
hence this helps the accounting standard setters who will be less politically pressured
while developing the new standards.
 Also the standard setters will have the consensus on various issues which includes the
development of the accounting standard which must be fundamental and economical.
b)
As per the statement that is given by Hines this can be seen conceptual framework is considered
to be the strategic manoeuvre for the purpose of providing the standard legitimacy to standard