HI6025 Accounting Theory: Comparative Analysis of Australian Standards

This report provides an analysis of Australian accounting standards, focusing on the efficiency of accounting systems and the impact of IFRS and AASB. It examines two articles related to the quality of financial reporting in Australia and the role of new media in external accounting information. The report discusses the reasons for selecting these articles, the purpose of the studies, the research questions they address, and the similarities and differences in their findings. It also highlights the implications of the research findings for external reporting stakeholders, concluding that the AASB framework is more efficient than IFRS in the Australian context. Desklib offers a variety of solved assignments and past papers to aid students in their studies.

HI6025 ACCOUNTING THEORY AND CURRENT ISSUES

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HI6025 ACCOUNTING THEORY AND CURRENT ISSUES
Executive summary
The report discusses the facts majorly understanding the efficiency of the accounting standards
of the accounting systems in Australia. It takes into concern the various parameters that are
mainly used for the maintenance of the efficiency of the stands of the accounting. There are
majorly two accounting standards that are being used in the procurement of the technical
advancement of the information. Thus the report tries to analyse the difference that the
accounting mediums face after the implication of the standards of the accounting. The purpose
of the report deals with the discussion of the article that is used for the proper functioning of
the operations. The articles majorly discuss the comprehensive coverage of the report that
covers the ground of the efficient maintenance of the accounting elements. The IFRS and AASB
are majorly the two broad parameters that have been used for the proper implementation of
the information. Thus, it has been stated that the report has taken into concern about the
various parameters of the study. There are specific methods of simplification that needs to be
taken into consideration for the betterment of the operations.

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Table of Contents
1.0 Introduction...............................................................................................................................4
2.0 Background................................................................................................................................4
2.1 Reason behind choosing this two articles..............................................................................4
2.2 Purpose of study and research question...............................................................................5
2.3 Similarity in study and difference..........................................................................................7
2.4 Implication of the study.........................................................................................................7
3.0 Conclusion..................................................................................................................................9
Reference list.................................................................................................................................10

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HI6025 ACCOUNTING THEORY AND CURRENT ISSUES
1.0 Introduction
The report discusses two article of the accounting review in Australian accounting standards.
The articles were the review of the history of the quality in the financial reporting in Australia
and New Media along with External Accounting Information. The report consists of proper
explanation regarding the reason of choosing the two journals for conducting the research.
Further, the research focuses on the purpose and the research question of the two journals and
provides a vivid idea.
2.0 Background
2.1 Reason behind choosing this two articles
The first journal is about the balance of academic discourse of accounting. The second journal is about
the impacts of accounting review on decision of accounting. Over the last ten years the literature of
accounting enhanced the behavioural research in two forms. One based in psychology of cognitive and
another based in economic tradition. It is obvious that both the forms have interest in knowing the
features that enhanced judgement and decision of accounting. Researchers could easily gain knowledge
about this with the help of second journal. The articles discuss the implications of the accounting
standards over the years that have led to the outcome of the improvement in the measures of
the standards of accounting (Schaltegger, 2017). The article of the historical review of
accounting standard tends to the procurement of the analysis of the qualitative approach of the
standards. However, on the other hand, the other article of external information about
accounting acquires information about the technical aspects of the standard about the
accounting which is meant to ascertain the standards. Utilization of the media and
technological aspects that helped in the procurement of the information’s about sensitive data
has led top efficiency in operations (Jeanjean, 2008).
The article of the historical review of the standards of the accounts was adopted because it
needed to analyse about the history of the cost accounting strategies that were being adopted

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for the proper functioning of the accounting systems. The accounting methods that were being
adopted stated the purchasing power of the individuals through the level of the price index that
is adapted for the system. Original valuation of the standards of the accounting is inoperative
for the calculation of the accounts in the worldwide basis. There are majorly four parameters
that are widely used for calculating the qualitative approach of the systems of the accounts.
According to the standards of the AASB framework it has been mentioned that there are
majorly two roles that have been adopted by the authorities that have been broadly defined as
the predictive and the role of the conformity (Barth et al., 2012).
These two roles have put more emphasis on the mechanism of the, making of the decision of
the standards of the accounting. The major constituents that affect the quality of the standards
of the accounts are the content of the material of the standards of the accounting.
Thus, it has formulated new ways to handle the vast quantity of the data records. It even
emphasises on the need for changing the applicability of technological innovation that will
uplift the significant factors affecting the quality of the reports (Hope, 2003). The study
regarding discourse on the accounting till now is in the form of small scale. Now the demand
increased and their claim was applicable to many companies. The studies is equivalent to the
research that focus on the method in which interaction of social helps to reflects and create the
particular strategies.
2.2 Purpose of study and research question
There is a specific purpose that is analysed in the report. The primary purpose of the report is to
analyse the standards of the accounting systems that have tried to improve the accounting
operations in the economy of Australia (Craig, R, 2007). The research connects the review withe
the review to the effects of difference in context. The task environment of accounting separates
from the environment of context. The main purpose of the second journal is to give a ways of
theory based taxonomy. It is done in such a way that description of context could enhanced the
behaviour. Economic and psychological approaches share the objectives of influencing the

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environment of task. The research that was made was majorly determined by three revolving
around questions such as the outcomes that were released after the advent of the
technological outbreak and progress towards the simplification of the systems of the accounts.
Thus, it makes an effort towards attaining the major section of the individual to the integration
of the delivery of operation made at a global scale. The research question is majorly based on
the applicability and the wide scope of the online applications and the media in uplifting the
operations of the business environment. Taxonomy introduction starts with the principal
disparity between the task environment of accounting and environment of context. The
research journal provides four types of effects of context.
In the article review of the actual quality for financial reporting is in Australia by Elaine Evans it
discussed the evolution of the financial elements that have brought the evolution in the
standards of accounting through the advent of AASB (Linnenluecke et al., 2012). Various
knowledge levels regarding procedure of accounting and altering purposes in utilising the
annual report of company enhanced the accountant to implement different strategies.
Different characteristics like reduce the risk of accountant, exhibits of Hendrickson could be
found in the first journal. Another significant ground of the research is based on the
communication system of the standards of accounting with the element of the coverage of the
accountability of the knowledge (Joubert, 2012).
Research question that were followed by the second journals are as follows:
 What is the role of decision makers of accounting?
 How the tasks of accounting are described?
 How the map of context does help the decision maker to become expert?
Research question that were followed by the first journals are as follows:
 What are the claims made by the accounting discourse?
 What are the tension between judgements and facts?
 What are the implication regarding Accounting’s writing skill?

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2.3 Similarity in study and difference
The two articles that are given in the report constitutes of majorly certain similarities of
information. The IFRS based accounting standards also claimed for bringing broad coverage of
the standards of account that would be able to cover a more significant portion of parameters
of the accounting world. AASB and IFRS have been adopted by the government of Australia for
the attaining quality enhancement of all reports formulated according to standards of the
accounting methodology. With the advent of new media systems in the accounting reporting
area, the war of operations have indeed changed by the basic methodology of the report
creation has been the same (McClure et al., 2017).
The significant difference that was formulated the where the application of the subsection that
was formulated in the AASB standards of accounting. The first journal mainly based on the
concept of information impact on the cognitive perspective and economy perspective. While
the second journal focuses on the accountings writing skill. There were different sets of
information that were adopted during the formulation of the AASB standards such as the
liability measure, property rights and the acquisition of other resources. Thus, for the
formulation of different standards of the accounting, it was straightforward to calculate the
parameters of the calculation of the different parameters enlarge the scope of operation. There
was therefore specific limitation in the defilement of the study under IFRS study. The objective
of the first journal is to determine the accounting discourse. While, the second journal’
objective is to determine the impacts context of accounting on the accounting decision. There
was a lack of proper organisation of records of the accounting parameters (Al Farooque et al.,
2017).
2.4 Implication of the study
Implication of effects of information for integrating perspective of economy and coginitive
The example provides illustration of context could have dispute impacts on behaviour of
accounting. Researcher practically wants to evaluate task of accounting clearly, but also wants
to avoid influences that are extraneous regarding the objectives of the theory (Higgs et al.,

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2017). Moreover, when tasks are given in neutral terms of context, researcher must consider
the potential arises due to abstraction. If the researchers unable to explain tradeoffs in the
mentioned journal, then the issues could come up as a empirical question.
Implication for teaching skills of writing in Accounting
Discourse of academic accounting tilted towards a style with the help of generic patterns,
functional headings and increased reliability on evidence that is duplicatable. It also maintains
an orientation to professional judgement of individual. Particular characteristics of discourse of
academic accounting found in the journal considered for conducting this research. Finding of
the journal claims that the students of accounting unable to accumulate the community of
academic accounting. Form the above statement it could be concluded that entire students of
accounting would end up as practitioner. The journals mainly focused on three areas. The
effects of collaboration are to finish the project of writing. Secondly, the uses of model text in
the place of work. Lastly, uses of context in workplace could be used as a part of writing
assignment’s design.

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3.0 Conclusion
The early adoption of the accounting standards in Australia was according to the 2005 IFRS.
It heavily resulted from the consequences of the reporting of the finance. However, specific
changes are made in the accounting standards of Australia. Under the recent formulation of the
laws, the AASB framework has established a new standard of the system of the accounts. The
report discusses the accounting standards that been adopted by Australia and their implication
on the working environment of Australia. Thus, it gives s helpful insight into the workings of the
accounts measurement that helps for the proper functioning of the system. Thus, revealing the
standards of the account, it can be said that the framework of AASB is more efficient than IFRS.

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Reference list
Books
Schaltegger, S., & Burritt, R. (2017). Contemporary environmental accounting: issues, concepts
and practice. Routledge. Retrieved on: 9th August 2018, from :
https://parsproje.com/tarjome/hesabdari/h339.pdf
Journals
Jeanjean, T., & Stolowy, H. (2008). Do accounting standards matter? An exploratory analysis of
earnings management before and after IFRS adoption. Journal of accounting and public
policy, 27(6), 480-494. Retrieved on: 10th August 2018, from:
https://s3.amazonaws.com/academia.edu.documents/6448717/japp_080525_submitted.pdf?
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%3DDo_accounting_standards_matter_An_explor.pdf
Barth, M. E., Landsman, W. R., & Lang, M. H. (2008). International accounting standards and
accounting quality. Journal of accounting research, 46(3), 467-498. Retrieved on: 15th August
2018, from: https://onlinelibrary.wiley.com/doi/pdf/10.1111/j.1475-679X.2008.00287.x
Hope, O. K. (2003). Disclosure practices, enforcement of accounting standards, and analysts'
forecast accuracy: An international study. Journal of accounting research, 41(2), 235-272.
Retrieved on: 8th August 2018, from:
http://www.sseuk.org/index.php/ABR/article/download/3693/2241
Craig, R., Smieliauskas, W., & Amernic, J. (2017). Estimation uncertainty and the IASB's
proposed conceptual framework. Australian Accounting Review, 27(1), 112-114. Retrieved on:
9th August 2018, from: https://onlinelibrary.wiley.com/doi/pdf/10.1111/auar.12147

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Linnenluecke, M. K., Birt, J., Chen, X., Ling, X., & Smith, T. (2017). Accounting research in
Abacus, A&F, AAR, and AJM from 2008–2015: A review and Research Agenda. Abacus, 53(2),
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McClure, R., Lanis, R., & Govendir, B. (2017). Analysis of Tax Avoidance Strategies of Top
Foreign Multinationals Operating in Australia: An Expose. Retrieved on: 10th August 2018, from:
http://cdn.getup.org.au/1507-Aggressive-Tax-Avoidance-By-Top-Foreign-Multinations.pdf
Bello, A. (2017). Accounting for inflation: arguments of recognition in Islamic accounting
standards. In SHS Web of Conferences (Vol. 34, p. 09004). EDP Sciences. Retrieved on: 20th
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Joubert, M., Garvie, L., & Parle, G. (2017). Implications of the New Accounting Standard for
Leases AASB 16 (IFRS 16) with the Inclusion of Operating Leases in the Balance Sheet. Journal of
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Higgs, E., Harris, J., Murphy, S., Bowers, K., Hobbs, R., Jenkins, W., ... & Thompson, A. (2018). On
principles and standards in ecological restoration. Restoration Ecology, 26(3), 399-403.
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Al Farooque, O., & Ahulu, H. (2017). Determinants of social and economic reportings: Evidence
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https://www.researchgate.net/profile/Omar_Farooque/publication/295601323_Determinants_
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Articles
New Media and External Accounting Information: A Critical Review Gregory D. Saxton. Retrieved on: 3rd
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Esther Cheung, Elaine Evans and Sue Wright: An historical review of quality in financial reporting in
Australia Retrieved on: 12th August 2018, from:
An_historical_review_of_quality_in_financial_repor.pdf