Accounting Issues: Licensing, Theories, and Exposure Draft Analysis

This report provides a detailed analysis of various accounting issues. It begins by examining the challenges faced by accountants regarding licensing requirements, particularly in the context of new regulations and surveillance conducted by the Australian Securities and Investments Commission (ASIC). The report then delves into the application of accounting theories, including positive accounting theory, agency theory, and normative accounting theory, to the issues discussed. It explores how these theories explain and predict accounting practices, the relationships between different parties (such as accountants and regulatory bodies), and the selection of appropriate accounting systems. The second part of the report focuses on the FASB Exposure Draft concerning accounting standards updates, specifically addressing implementation costs in cloud computing arrangements and internal-use software. It outlines the proposed changes, including how companies should account for implementation costs and disclosures required for these costs. The report highlights the benefits of these updates and how they serve the public interest by providing clearer guidance on capitalizing and disclosing implementation expenses, ultimately aiming to improve the current Generally Accepted Accounting Principles (GAAP).