英国coursework assignment范文

英国coursework assignment范文

来源:未知作者:libing_yuan发布时间:2015-05-07 11:09
这篇英国assignment,是一篇留学生写的本科课程作业,供各位留学生参考。

Module No: ACC3110

 

Module Leader: ***********

Student Name: ***********

Module Leader: **********
 

Abstract


With the development of international of the world economy trend, the growth of international capital market and the rapid development of knowledge economy, the traditional accounting theory had already accepted a huge challenge which the practice of financial accounting lacked a widely accepted theory that clearly enunciated the objectives of financial reporting; therefore, the financial accounting need to establish a set of conceptual framework urgently that would lead to an improved financial reporting and let the readers to make more informed resource allocation decisions. This essay aims to evaluate the statement ‘Developing a conceptual framework is an impossible possibility’ and provide examples. First of all, this essay will discuss the definition and the development of conceptual framework for accounting. Then, it will give some examples for issue the objectives of conceptual framework. Finally, it will be give a summary and suggestions for develop CF in the future.

Put simply, the accounting seems to a kind of language that provides information about the financial position of an organization. When the users study accounting, the users can communicate and understand the financial operations of any and all types of organization, (Bloomfield, 2008, P433). Because of the most of organizations required the information is very similar, the information was divided into three main categories. The information include about: Operating information; Financial accounting information and Managerial accounting information. In order to facilitate the informed use the financial information, so the Financial Accounting Standards Board (FASB) established some specified rules or conventions called “principles”, (FASB, 1976). These principles are called Generally Accepted Accounting Principles (GAAP) and they provide rules to guide the development of the accounting. The GAAP requires the preparation of three different statements: Balance sheet, Income statement and Statement of cash flow. The purpose of accounting is to provide information that is useful and relevant for interested parties when making decisions regarding the company and its operations.

Modern accounting


With history into the 20th century, the industrial economy era of accounting has gradually developed into a modern accounting. At this stage, the accounting standard system to start; The United States occurred in 20 s, 30 s of the economic crisis has led to the "securities law" and the promulgation of "securities exchange act and for research and accounting system. The formation of the financial accounting standards system not only laid the modern accounting legal system and the foundation of modern accounting theory system, and promote the transformation of traditional to the modern accounting. Since the 1950 s, the further deep development in accounting norms at the same time, to adapt to the development of modern management science, in decision-making, accounting as the main body to improve economic efficiency service of the modern enterprise management accounting is established. In 1952, the international federation of accountants formally adopted the term "management accounting", marks the formal accounting is divided into two fields: the financial accounting and managerial accounting.

Commercial economy era is the real meaning of accounting does not exist. In this era of accounting at best can only call book-keeping. After the baptism of the Renaissance and medieval thought enlightenment, the rapid development of economy and get along the coast of the Mediterranean. The seeds of capitalism economic relations, especially the Mediterranean financial, commercial and industrial aspects of what has happened great change for the traditional unitary bookkeeping. In 1494, Italian mathematician luca and its agri the outline of arithmetic, geometry, proportion than with the advent of unveiled the bookkeeping, a new page in the history of ancient to modern bookkeeping to bookkeeping and even modern accounting. In 1494 the outline of arithmetic, geometry, ratio and proportion of publishing is considered the first milestone in the history of the development of accounting, luca, the agri has also been viewed as the "father" of modern accounting. Traditional mathematics and the Netherlands mathematician Simon Stevens is creative development and improve the system of book-keeping method. Can think of, the development of accounting (bookkeeping) before the 19th century is based on luca and its agri and Simon of Steven's book.


Since the 1760 s of the industrial revolution in promoting the development of productivity and at the same time, greatly improving the production socialization. As human society entered the industrial economy era, the development of bookkeeping also started to enter the stage: bookkeeping legislation, and quickly has an important role in national economy, the legal system; Bookkeeping role in government and the company's management is becoming more and more big; Around the balance sheets of research on the theory of good books at the same time, also has laid the foundation for statutory audit; Continental bookkeeping and British bookkeeping system is formed. This stage of bookkeeping in essence has developed for accounting. And the rise of co., LTD., and British has led to the 1853 revision of the "company law" the world's first CPA ─ ─ the establishment of Edinburgh CPA; The establishment of the Edinburgh CPA is regarded as the second milestone in the history of the development of accounting. And in the late 19th century and the early 20th century science and technology, the development of economic, political, and cultural experience had a profound impact on the accounting development. Accounting for the development of this period mainly reflects the following characteristics: with a series of accounting concepts and logical starting point for research of accounting basic theory has been established; From the aspects of management research trend of accounting problems have appeared; Cost accounting theory has from pure cost calculation for the development of scientific cost control system; The prototype of the management accounting has been initially formed; Some companies have established the relationship between financial accounting and management accounting collaboration.

Containment system

The internal audit system is an important part of accounting management system, it mainly includes: the organizational form of audit work and the specific division of labor; Responsibility and authority of the audit work; Audit accounting vouchers and check account books, accounting statements and other methods. Audit work: (1) is the primary responsibility of the audit plan indexes such as finance, cost and expenses whether complete, the compiled on the basis of reliable, relevant calculation is cohesion, etc.; (2) the audit actual economic business or financial revenues and expenditures in compliance with the provisions of the relevant laws, regulations, rules and regulations, in case of problem to correct them in time; (3) audit accounting vouchers, account books, accounting statements and other accounting information content is lawful, authentic, accurate and complete, the procedure is complete, is in line with the relevant laws, regulations and rules, the requirements of the system; (4) to review the changes and the balance in the increase or decrease in assets, and check and book records, to determine whether real account conform to, and find out the reason that the accounts inconsistent.


Internal check system stipulates the sums involved companies and goods receipts and payment, clearing and registration of any work, must be handled by two division of two or more persons, to play the role of a kind of mutual restriction. For example: the cashier personnel shall not concurrently hold the position of audit, keeping accounting files and casting accounts of revenue and expenditure, expenditure, credits or registration work, namely "pipe account regardless of money, money ignore the bill". Through the establishment of the internal audit system and restrain system, both to ensure that all kinds of accounting information true, legitimate and complete, and can make the person in charge of various functional departments formed between a competing mechanism.

Financial analysis


Cost accounting system mainly includes object of cost accounting, cost accounting methods and procedures, and cost analysis, etc. In particular is cost analysis is an important duty of a financial accounting personnel, business operators must regularly to understand the status and the firm's cash flow. Enterprise accounting personnel also want to authorities on a regular basis to provide various statements, cost for the operator to cost analysis, cost control and efficiency of measure. The establishment of the small and medium-sized enterprises through the analysis of the financial accounting system, to determine the main content of financial accounting analysis, analysis of the basic requirements of financial accounting and organizational processes, financial accounting, analysis method and the analysis of the financial and accounting report writing requirements, etc., make the enterprise to master the financial planning and financial indicators of completion, check the national financial system, the implementation of law and order, to improve financial projections, financial planning, study and master the regularity of enterprise financial and accounting activities, improving the financial accounting work.


Standard of work


Under the condition of market economy, small and medium-sized enterprise managers should better service to realize accounting subject, accounting scope, and the new characteristics of information quality. Accounting work to meet all types of investors, creditors, and the need of national macroeconomic management department, because the accounting work is not only affect the enterprise and the relations of distribution among the state, also affect the social various aspects interest relationship, so enterprises should coordinate all aspects of the interest relations, resist and guard against all kinds of market risk as its basis, make the accounting information real fair to reflect the operation of the enterprise funds, to improve the economic benefits of the situation and development prospects of the enterprise. Therefore, enterprises should ensure efficient operation of the national economy, promote the healthy development of the socialist market economy, raise the management of small and medium-sized enterprises (smes) in recognition of the importance of accounting and financial management, so as to fully realize the significance of accounting the basic work. At the same time by the ministry of finance issued the "guidelines for fundamental accounting work" as the basis, improve the small and medium-sized enterprise accounting basic work, improve the level of the accounting work.

Independence analysis


From the historical analysis, financial accounting of history is long, since palmer jolly double entry bookkeeping produces, has more than 500 years historical development process. Management accounting and cost accounting from financial accounting separation and become an independent discipline or since the 1920 s. In 1952, the annual meeting of the international federation of accountants (fac) formally adopted a special vocabulary "management accounting", the modern accounting divided into two major branches, financial accounting and managerial accounting. According to the 1986 American accounting association committee subordinate management accounting practice "management accounting announcement 1 a: the definition of" management accounting is to provide management authorities used inside the enterprise planning, evaluation, control and ensure the reasonable use of enterprise resources and financial information needed for the implementation of the management responsibility of recognition, measurement, collection, analysis, application, interpretation and transfer process." This is a representative and more authority to the definition of management accounting.


It is generally believed that the western financial theory of independence is a famous American scholar CREEN was published in 1897 marked the company's financial. Western financial stake in the company as the research object, focus on continuously developed capital market, has become the brightest branch of western economics. The development of financial market and the change of enterprise organization on the evolution of enterprise financial played an important role. From the produce and development analysis, the development of accounting theory and the market economy and modern enterprise system under the direct impact of principal-agent theory. But the financial accounting major is affected by the theory of economics, information economics theory. Management accounting and cost accounting mainly by various mathematical models, management theory, organization theory, and the influence of the computer technology; Closely related to financial management and finance, mathematical economics.


From modern accounting education, the education department of accounting and financial management for listed under the business management disciplines in the management, can be understood as a financial management and accounting and level in the same subjects. Accounting is an economic information measurement, recognition and reporting of discipline, is engaged in accounting recognition, measurement, record and summary report, its purpose is to provide all stakeholders to which investment decision-making information; Financial management is the shareholder wealth maximization as the goal, directly to the enterprise value movement and its financial relationship as reflected in the exercise management, mainly related to the budget of the investment management, capital structure, dividend policy decisions.


Discussed from the four course content and target are different. Financial management and financial accounting, financial accounting and management accounting difference obviously, in this not discussed in detail, this article mainly discuss the difference between the following two aspects.


Accounting theory as systematic and rational knowledge for accounting practice is a set of concept system that explains and guides the accountant to measure, confirm and pass on the accounting information (A statement of basic accounting theory, 1966). According to Kenneth Most, theory is a kind of systematic descriptions for rules and principles of a set of a series of phenomenon. It can be as a kind of framework for thinking on the organization, explaining of phenomena and predicting of the future. Moreover, according to Solomon (1991), if people do not understand the concepts’ meaning, the accountants may stand on the reporting. Thus, the Industry professionals spent so much time, money and energy developing the conceptual framework, (Nrupalia, 2009). In fact, the America’s Financial Accounting Standards Board (FASB) researched the conceptual framework of accounting is a kind of researching for accounting theory in 1970s.

According to the FASB in the United States, which developed one of the first conceptual framework in accounting, the definition of the financial accounting conceptual framework as ‘an article of association and a set of goals and basic principle composition, interrelated inner logic system’,  (FASB, 1976).

In detail, from the historical development of the accounting standard and accounting standards institution change to observe, there are three main objectives to develop conceptual framework for the financial accounting. First of all, the CF provided a reasonable “Excuse” for the formulation of accounting standards. Accounting standards has some character, such as: the technical normalization, the economic result of the accountancy information, (Zeff, 1978), the marketability (Accounting Standards Established by public choice mechanism; May and Sundem, 1976), the politicalization and so on. Thus, it will inevitably undergo the pressure of interest groups in the making process of the accounting standards, and even it will evolve into a political game process. In fact, the formulation of accounting standards is a process of political game. For example, the united accounting standard was formulated by non-governmental organizations from the beginning. The government as a regulator has the power to veto and has a right to deprive the standards' establishment power of these non-governmental organizations. In other words, the game of the participants is the folk standard-setting bodies (FASB) and the governmental regulators (i.e. SEC).

When the accounting standard of FASB was censured, the SEC has two choices: depriving the standards' establishment power or no. Likewise, the FASB also has two choices: continuing to formulate the CF or no.

Two choices 

SEC Depriving   NO depriving
 
FASB Formulating the CF  (100, 100)  (-50, 0) Don't formulate CF (50,50)(0, 0)

This table issues clearly the process of political game, the previous digits means the payoff of FASB and the digits after comma means the payoff of SEC. If the SEC does not deprive the standards' establishment power of FASB and the FASB formulates the CF to improve the quality of the accounting standards, then the FASB continue to enjoy the right to standards' establishment and it also get high reputation by work hard and innovation. In the same time, the government will get a high quality accounting standard system. At this time, the payoff is (100, 100), it means the utility of FASB and SEC are the best. If the SEC does not deprive the standards' establishment power of FASB, but the FASB does not formulates the CF to improve the quality of the accounting standards, too. Then, the FASB will be condemned and the SEC will not have a high quality accounting standard system. In this time, the utility of FASB and SEC will go down, and the payoff is (50, 50). If the FASB formulates the CF to improve the quality of the accounting standards, but the SEC chooses to deprive the standards' establishment power of FASB; then, the CF of FASB will be canceled. Meanwhile, the government will spend a large cost to find and establish a new standard-making institution. Therefore, the effectiveness of SEC is negative and the payoff is (-50, 0). Finally, if the SEC chooses to deprive the standards' establishment power of FASB and the FASB does not formulates the CF, the effectiveness of SEC and FASB will be zero (payoff is 0).


According to the above, we can get the best conclusion that the FASB formulates the CF and the SEC chooses to keep the standards' establishment power of FASB. Thus, the result of the game is making CF to improve the quality of the accounting standards. Similarly, we have seen this situation in the real world.


The second objective of conceptual framework is to improve the users to understand the accounting information. With the development of social economy, the issue of "Accounting Standards Overload" has arisen in Financial Accounting Standards. This situation leads to accounting report become more and more complicated. Therefore, the users must firstly use the CF to understand the basic concepts and procedures of financial accounting. For instance, the SFAC NO.3 (Elements of Financial Statements) and the SFAC No.6 (replaces SFAC No. 3 in 1985s) are capable of achieve this purpose which improves the users to understand the accounting information. The SFAC No.6 include the concepts of Assets, Liabilities, Equity (Net Assets), Investments by owners, Distributions to owners, Revenues, Expenses, Gains, Losses and Comprehensive Income, (FASB 1985). The ten elements of financial statements are “the building blocks with which financial statements are constructed—the classes of items that financial statements comprise.” They give the specific definition for each element of financial statements and the users will understand clearly the accounting information. For example, revenues, gains, expenses, and losses describe changes in equity due to profit-generating transactions.


The case of WorldCom Scandal is a look back at one of the biggest corporate scandals in US history. This case talking about WorldCom used shady accounting methods that reducing the cost for increase inflated cash flow and profit to mask its declining financial condition by falsely professing financial growth and profitability to increase the price of WorldCom's stock, (WorldCom, 2005). WorldCom used the shady accounting method to make the definition of the elements of accounting information confusedly. In the same time, the confused accounting information makes the investors support and invest WorldCom. In the end, the investors lose all their money. The result issues the elements of financial accounting is important for the users understand the accounting information. In order to resolve this problem like this case in the future, the conceptual framework will develop perpetually and be accomplished.


The finally objective of conceptual framework is to provide a guide for the formulation and assessment of accounting standards and ensure standards’ consistency and systematicness. CF is able to assess the quality of accounting standards which has already in process, because of the formulation of accounting standards not only consider the technology level, but also it may not completely keep the transcendental neutrality. Such as, in 1996s, American Accounting Association (AAA) and Financial Accounting Standards Board (FASB) held the forum of financial reporting, they choose the five worst financial standards by the conceptual framework. Another example is International Accounting Standards Committee (IASC) and International Accounting Standards Board (IASB) used the CF to revise a series of International Accounting Standard (IAS) and International Financial Reporting Standards (IFRS) which has already in process during these years.

To sum up, developing the conceptual framework of accounting is impossible. This essay issues the impossible with some examples that conceptual framework is able to improve the users to understand the finical information and guide the development of accounting standards.ll spend a lot of time, money and energy on the process of development of CF.

 

BIBLIOGRAPHY

1.Financial Accounting Standards Board, (1976), Discussion Memorandum, Conceptual Framework for Financial Accounting and Reporting: Elements of Financial and Measurements, FASB.
2.FASB of the Financial Accounting Foundation: Proposal《Princip les, based app roach to U. S Standard Setting》“Princip les developed using the Concep tual Framework”p. 6, October 21, 2002
3.Nrupalia(2009)Accounting and its role in society
Available from: http://nrupalia.hubpages.com/hub/Accounting-and-its-role-in-society
[Accessed 15 November 2011]
4.Zef.The Rise of Economic Consequences[J].TheJournal of Accountan cy,1978,12
5.Bob Lyke & Mark Jickling, (2002), “WorldCom: The Accounting Scandal”, Unpublished, Specialist in Social Legislation Domestic Social Policy Division & Specialist in Public Finance Government and Finance Division. Available from:http://ews.bbc.co.uk/1/hi/business/4680221.stm
6. Zef.The Rise of Economic Consequences[J].TheJournal of Accountan cy,1978,12
7. May,Sundem.Research for Accounting Policy:An Over.view[J].The Accounting Review,1976.
8. FAr.The Structure of Establishing Financial AccountingStandards[R].New York,1977 
9. Donald Kirk.FASB and Industry[J].The Journal of Ac.countancy,1982 10. FASB.Scope and Implication of Conceptual FrameworkProject[R].1976




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