ACC304 Accounting Theory and Practice

QUESTION 1The COVID-19 coronavirus pandemic is affecting the financial performance of many companies. Companies may planto highlight and explain these impacts –i.e. by including quantitative and qualitative information about them either inside or outside the financial statements(KPMG, 2020).You are required to:focus your discussion primarily on how companies might present these impacts on financial performance in the income statement.[Total: 20 marks]QUESTION 2Many argue that accounting’s importance hasdeclined because the current accounting system does not reflect the firm’s intrinsic value(Lev and Zarowin, 1999; Fulmer and Ployhart, 2014). The problem derives from not onlyaccounting itself but also other factors such as potential increases in uncertainty insociety or in the financial markets. Mokokawa (2015) aims toshowthe associations between the amount of voluntary human capital disclosures and company profiles, including required human capitaland accounting information to verify a disclosure theory that consolidates four traditional theories, namely agency theory, stakeholder theory, signalling theory and legitimacy theory. You are required to:(a)Propose two (2)theories that arerelevant to this voluntary disclosure study, other than the disclosure theory that consolidated four traditional theoriesabove.(10 marks)(b)Interpret the results of the followingtables. Extracted from the reading list: Motokawa K. (2015). Human capital disclosure, accounting numbers and share price. Journal of Financial Reporting and Accounting13(2), 159-178.To show the associations between the amount of voluntary human capital (HC) disclosures and company profiles, theresearcher rantheregression analysis for the following two (2) models:(SP) = α1+ α2(BV) + α3(NI) + α4(HCTOTAL ÷ page) + (Industry)…(1)(SP) = α1+ α2(BV) + α3(NI) + α4(HCQC) + α5(HCMC) + α6(HCPS) + (Industry) + ε…(2)
tag Read less
QUALITY: 100% ORIGINAL PAPER – NO PLAGIARISM – CUSTOM PAPER

Leave a Reply

Your email address will not be published. Required fields are marked *