TAK Chapter 1
TAK Chapter 1
TAK Chapter 1
CHAPTER 1 INTRODUCTION
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Recent developments
Academic and professional developments in accounting theory have tended to take different approaches Academic research focuses on capital markets, agency theory and behavioural aspects The profession has sought a more normative approach what accounting practices should be adopted
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Recent developments
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Recent developments
Conceptual framework resurrected in 1980s
states the nature and purpose of financial reporting Establishes criteria for deciding between alternative accounting practices SACs 14
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Recent developments
Conceptual framework Recent Developments
Joint project between IASB & FASB International harmonisation of accounting practices through a single consistent set of international financial reporting standards (IFRS)
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Recent developments
The conceptual framework underpinning the IFRS favours a move toward
accounting practices that provide information for enhancing decision making by investors and others recognising all gains and losses in the accounting periods in which they occur measurement using exit values
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Content outline
Part 1: Accounting theory (chapters 1 3) Part 2: Theory contributing to practice (chapters 4 10) Part 3: Accounting and research (chapters 11 14)
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Summary
Accounting theory Major periods of accounting theory development Normative accounting Positive accounting Conceptual framework IFRS
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