Questão 1
Questão
Barth (2018): Wat is accounting?
Responda
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learned profession
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informed economic reality
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Accounting judgements requires objectief thinking to create useful information that can help decision-makers make better decisions
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These decisions have consequences for economic reality and, thus, accounting purposes
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This is the ‘information perspective’ on accounting, which has been a cornerstone of academic research for more decades
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accounting is record-keeping and the creation of financial reports according to a set of rules.
Questão 2
Questão
Barker Schulte (2017), What is an institution?
Responda
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agreed-upon means for creating rights and obligations
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The use of an accounting basis is perhaps best perceived as a pattern of behaviour and our starting point is an institutional perspective of ‘understanding social behaviour as a historically informed development of rules of “appropriate” behaviour’.
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a pattern of behaviour becomes finally routinised and fully taken-for-granted
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institutions are mechanisms that facilitate efficient exchanges and interactions between economic
players
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humanly devised constraints that shape human interaction’ (p. 3) that provide the ‘rules of the game in society’ (p. 3) where the actions of players (organisations) are governed by rules (institutions).
Questão 3
Questão
Georgiou Jack 2011, p.311: Wat is volgens deze artikel de Institutional approach?
Responda
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The use of an accounting basis is perhaps best perceived as a pattern of behaviour and our starting point is an institutional perspective of ‘understanding social behaviour as a historically informed development of rules of “appropriate” behaviour’.
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Institutionalisation: a pattern of behaviour becomes finally routinised and fully taken-for-granted
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an institution is an agreed-upon means for creating rights and obligations among agents.
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institutions are mechanisms that facilitate efficient exchanges and interactions between economic
players
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Institutions influence organisational choices by defining which actions are suitable and supportable in an economy
Questão 4
Questão
North* (1990) Definition of institutions?
Responda
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Humanly devised constraints that shape human interaction' (p. 3) that provide the 'rules of the game in society' (p. 3) where the actions of players (organisations) are governed by rules (institutions).
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Institutions influence organisational choices by defining which actions are suitable and supportable in an economy
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Economic welfare broadly refers to the level of prosperity and living standards of either an individual or a group of persons.
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Economic Activity consists of all activities that generate Economic Value
Questão 5
Questão
Why do we have reporting standards?
Responda
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Economic welfare broadly refers to the level of prosperity and living standards of either an individual or a group of persons.In the field of economics, it specifically refers to utility gained through the achievement of material goods and services. In other words, it refers to that part of social welfare that can be fulfilled through economic activity.
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Economic Activity consists of all activities that generate Economic Value
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Economic value creation is regulated to increase social welfare
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In market economies, regulators are employed to guide this process
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Capital allocation is only a small part of the broad economic process to
generate Economic Value
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Capital allocation deals with selecting investments projects with positive Net Present Value
(NPV)
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Accounting is only a small part of the economic value creation process
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Acccounting Information provides information to facilitate Capital Allocation
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Inputs: Expected cash flows
Outputs: Return on Investment
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Managers respond to varying levels of rule precision by varying their earnings management attempts to minimize the chance their auditors will require adjustments.
Questão 6
Questão
Why do we have IFRS?
Responda
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help eliminate barries to cross-border trading
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Meer betrouwbare en transparante jaarrekeningen.
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Eenvoudige vergelijkbaarheid
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Stijging efficiënte markt.
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Lagere kosten stijging kapitaal
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Verbeterd de concurrentie en helpt met groei
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Economische welvaart stijgt indien binnen een land regulatie sterk is met sterke instituties. Hierdoor stijgt ook de kwaliteit van de informatie.
Questão 7
Questão
Hoe creëren we High Quality accounting?
Responda
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Hoge kwaliteit accounting = Hoge economische welvaart
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Door audit af te schaffen
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Meer conservatism in de jaarrekening
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HQI heeft te maken met de volgende factoren: internal controls, incentives, auditing en standaarden.
Questão 8
Questão
How do accountants think about value?
Responda
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Conservative: record reliable values: the best historical record >> Historical Cost Accounting (HCA)
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Future oriented: provide relevant information: best estimate of present value of future benefits >> Fair Value Accounting (FVA)
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Despite accounting standard setters advocating the increased use of fair value, not everyone is convinced that it is a legitimate conceptual basis for accounting.
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Representation of economic ‘reality
Questão 9
Questão
Critical Question: How should we Implement IFRS Standards in Financial Reports to maximize economic
welfare for investors?
Responda
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Economische welvaart stijgt indien binnen een land regulatie sterk is met sterke instituties. Hierdoor stijgt ook de kwaliteit van de informatie.
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Conservatisme: Leg betrouwbare waarde vast. Het beste manier is historische kostprijs accounting
Questão 10
Questão
Nolder & Kadous (2018)p.2: Wat is professional skepticism?
Responda
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Professional skepticism can be conceptualized as both a mindset and an attitude.
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Mindsets consist of a collection of judgment criteria and cognitive processes and procedures to facilitate completion of a particular task (openness or receptivity to information and the extent to which they seek out confirming or positive information).
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mindset conceptualization of professional skepticism captures the idea that information processing—in particular, critical thinking—is an essential component of skepticism.
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Attitudes are evaluative responses associated with a
target.
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exclude beliefs and feelings that drive individuals intentions and actions
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Relevant targets for the attitude of professional skepticism are the financial statements
Questão 11
Questão
Attitudes are evaluative responses associated with a target. Include beliefs and feelings that drive individuals‘
intentions and actions.
Questão 12
Questão
Relevant targets for the attitude of professional skepticism are the financial statements (i.e., management's assertions) and the evidence.
Questão 13
Questão
Barker Schulte 2017, p.55: At the heart of the method of financial accounting is the balance sheet, which is a
representation of economic ‘objective’, in the form of a summary of the rights (assets) and obligations (liabilities)
of a reporting entity.
Questão 14
Questão
Georgiou & Jack (2011), p.311: Wat heeft volgens deze artikel IFRS veranderd?
Responda
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IFRS heeft de de bestaande concept van historische kostprijs en stewardship veranderd en de standaarden zijn nu meer gericht op investeerder beslissingen en toekomstige kasstromen en fair value.
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Ze focussen zich op de verandering naar fair value waardering. Hiermee wordt verandering van historische naar economische gerealiseerd. Hiernaast wordt ook de verandering van weergave economische realiteit bewerkstelligt.
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The conceptual underpinnings of the standards move accounting practice away from established concepts of historical cost and stewardship towards concepts of investor decisions based on future
cash flows and fair values
Questão 15
Questão
Wat is het doel van artikel Georgiou & Jack (2011)?
Ze focussen zich op de verandering naar fair value waardering.
Questão 16
Questão
Barker & Schulte (2017), p.56: In this paper, we interpret the introduction of fair value measurement (FVM) in IFRS as a shift in metaphorical construct, from the historical to the economic, and so also as a shift in the accounting representation of economic ‘reality’.
Questão 17
Questão
Despite accounting standard setters advocating the increased use of fair value, everyone is convinced that it is a legitimate conceptual basis for accounting.
Questão 18
Questão
What is the Relation Financial Reporting Quality & Audit Quality?
Responda
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managers respond to varying levels of rule precision by varying their earnings management attempts to minimize the chance their auditors will require adjustments
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managers were more likely to attempt earnings management that were either structured to comply with precise standards or unstructured with respect to imprecise accounting standards
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Auditors often compromise in client negotiations when accounting standards do not provide precise guidance
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auditors are less likely to adjust earnings management attempts that were either structured to comply with precise standards or unstructured with respect to imprecise accounting standards
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auditors are more likely to adjust earnings management attempts that were either structured to comply with precise standards or unstructured with respect to imprecise accounting standards
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Auditors not compromise in client negotiations when accounting standards do not provide precise guidance
Questão 19
Questão
What is Economics instituions?
Responda
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mechanisms that facilitate efficient exchanges and interactions
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rules of the game in society
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Economic welfare broadly refers to the level of prosperity and living standards of either an individual or a group of persons.
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rules that facilitate efficient exchanges and interactions