ing Theory (question Patterns) 2z5l5n

Question no.1. a) Discuss in brief the development of ing principles from following view points: i. Institutional contribution phase. ii. Politicization phase. b) Analyze the relationship between ing theory, ing policy and ing practice. To what extent does the quality of ing policy and practice depend on ing theory? Question no.2. a) Why is a conceptual framework necessary in financial ing? b) “Formulating the objectives of ing depends on resolving the conflicts of interests that exist in the information market.”-Discuss. c) How are materiality related to the proper presentation of financial statements? What factors and measures should be considered in assessing the materiality of a misstatement in the presentation of a financial statement? (3+6+6) Question no.3. a. Discuss in brief the following approaches of ing theory: (i) Deductive approach; (ii) Inductive approach; (iii) Socio logical approach. b. “Financial ing information will be sought if the benefit to be derived from the information exceeds its cost.” Do you agree with this statement? Explain. c. What is income smoothing hypothesis? Discuss the different dimensions of smoothing. Question no.4. a. Compare the ants‟ definition of capital with the definition used by economists. b. Discuss the significance of the concept of „capital maintenance.‟ c. Explain the essential differences between the ing and economic approaches to income measurement. Question no.5. a. Analyze the effects of the cost convention on the measurement of ing income. b. Review briefly the possible effects of changes in price levels on ing data. c. State what is meant by current purchasing power ing. d. Why are human resources not recognized in financial statements? How can an entity report its human resources in financial reports? Question no.6. Write short notes on followings : a. The selective financial misrepresentation hypothesis. b. ing and capitalism. c. The free-market approach to the production of ing standards. d. The American ing Association (AAA). e. The public-interest theories of regulation. f. IASB. g. ICAB.

Question No.7. Some argue that having various organizations establish ing principles is wasteful and inefficient. Rather than mandating ing standards, each company could voluntarily disclose the type of information it considered important. In addition, if an investor wants additional information, the investor could the company and pay to receive the additional information desired. Required: Comment on the appropriateness of this viewpoint. Question No.8. The overriding requirement of a company‟s financial statements is that they should represent faithfully the underlying transactions and events that have occurred. Therefore, transactions and events have to be ed for in of their substance rather than their legal form. This principles is included in the IASB‟s Proposed framework for the Preparation and Presentation of Financial Statements. Required: Describe why it is important that substance rather than legal form is used to for transactions, and describe how financial statements can be adversely affected if the substance of transactions is not recorded. Question No.9. What are the implications for ing of the increasing concern with green issues?