...* Descriptive: Attempt to develop a set of interrelated concept which server as codify and explain financial reporting practices * Rationale for Conceptual framework Rationale for Conceptual framework Prescriptive: Develop a conceptual basis for what accounting practice should be. Element of financial reporting Element of financial reporting What we mean by FR? What we mean by FR? What should be the scope? What should be the scope? Qualitative characteristic Qualitative characteristic Objective of financial reporting Objective of financial reporting Need to address issues such as: * Without agreement, these issues will develop ad hoc manner * Building block of Conceptual framework Building block of Conceptual framework Absence of conceptual framework led to criticism. * The framework must be developing in a particular order. * Some issues need to be resolved before move to subsequent building block. * Must be develop in developing framework * Framework develops by IASC and later adopted by its successor IASB. History development of Conceptual Framework History development of Conceptual Framework Development in United States Development in United States * 1961 & 1962: accounting practice should be practice based on current values. * 1965: develop theory based on existing practice. * Lead to the release of APB statement no.4 but got critic for lack of real framework. * 1971: Lead to formation...
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...In an Islamic capital market (ICM) market transactions are carried out in ways that do not conflict with the conscience of Muslims and the religion of Islam. Here, there is assertion of religious law so that the market is free from activities prohibited by Islam such as usury (riba), gambling (maisir) and ambiguity (gharar). The ICM is a component of the overall capital market in Malaysia. It plays an important role in generating economic growth for the country. The ICM functions as a parallel market to the conventional capital market, and plays a complementary role in the Islamic banking system in broadening and deepening the Islamic financial markets in Malaysia. The Shariah Advisory Council (SAC) was established in May 1996 to advise the...
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...Assessment Task 1 – Issues in Financial Reporting Question 1 There are many potential benefits associated with the international standardisation of accounting standards. Firstly, the standardisation of accounting standards makes it easier for international investors to better understand, compare, and interpret the financial performance and position of companies from different countries that are in competition with each other or are operating within a similar industry. Greater comparability and analysis of information helps these international investors to make more efficient, educated and intelligent investment decisions, particularly when it comes to deciding between the alternative investments on offer, and helps them to take advantage of the risk reduction that is possible through international diversification. Secondly, the harmonisation of international accounting standards reduces barriers to capital inflows by helping companies raise capital in domestic as well as international markets. This is useful particularly for those companies that find it difficult to obtain the funding necessary for their long-term growth and expansion projects in their local economy due to a scarcity of resources. To overcome this problem, companies can have their securities listed on foreign stock exchanges and in doing so, be able to significantly expand their base of capital funding. Harmonisation makes this possible because investors as a result are better able to understand the status...
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...Information Doing accounting takes expert knowledge, considerable experience and continuous attention to new problems and solutions. Concepts and principles are important, as they form logical structure that practising accountants use every day to consider problems to make recommendations GAAP (Generally Accepted Accounting Principles) applied differently for different entities Rules, standards and usual practices that companies are expected to follow when preparing financial statements Stock market crash of 1929 brought GAAP AASB (Aust Accounting Standards Board) IASB (International Accounting Standards Board) AASB uses IASB as foundation, but includes more details applicable to Aust environment SACS – Statement of Accounting concepts SAVS established for general concepts and principles to be used in preparing financial statements SAC 1 – Definition of a Reporting Entity SAC 2 – Objective of General Purpose Financial Reporting SAC 3 – Qualitative Characteristics of Financial Information SAC 4 – Definition and Recognition of the Elements of Financial Statements Now, SAC 3 and SAC 4 is replaced with “Framework for Preparation and Presentation of Financial Statements” FYI: Difficulties that face accounting and managers by GAAP Difference in company structures – e.g. ABC = not for profit, publicly owned. Should ABC use same methods as other profit seeking organisations? Qantas / UNSW – employees are not assets. But for sports team, such as Sydney...
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...the qualitative characteristics of information (Leo et al, 2009). However, IASB and FASB try to develop a new conceptual framework recently. The project's objective is tried to create a new sound foundation for future accounting standards that are principles-based, internally consistent and also internationally converged. This assignment is about if Australia accepted the financial reporting that proposed in ITC 17, will it affect AASB and is there any inconsistency with the AASB? Discussion As mentioned earlier, in accounting, the separate entity concept treats a business as separate from its owners. In other words, the business is separate with the owners as economic unit (Financial Accounting Series, 2008). It is important for business has separate transactions with the owner’s personal transactions. Under SAC 1 Definition of the reporting entity is ‘general purpose financial report" means a financial report intended to meet the information needs common to users who are unable to command the preparation of reports tailored so as to satisfy, specifically, all of their information needs (Board, 2008) .’ Both IASB and FASB published documents that seek public comment on two of the eight phases of their joint project to develop an improved conceptual framework (Financial Accounting Series, 2008). The first and second documents is an exposure draft of chapters 1 and 2 of the framework and it about how to improved the financial reporting and qualitative characteristics and at...
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...I. History of Islamic Banking in Malaysia Malaysia started Islamic banking in early 1980’s. Islamic Banking is especially true for Muslim world where currently Islamic banking strides at two separate fronts. At one side, efforts are also underway to convert the entire financial systems in accordance to Islamic laws (Shariah). At the other side, separate Islamic banks are allowed to operate in parallel to conventional interest based banks. Malaysia opted for the alternative gradual way of developing and implementing Islamic banking system. 1.1 Origin of Islamic Banking in Malaysia The roots of Islamic Banking in Malaysia should go back to 1963 when the government established Tabung Haji or Pilgrims Management and Fund Board. The organisatio was established to invest the savings of the local Muslims in interest free places, who want to carry out pilgrim (Haji). Tabung Haji utilizes Mudarabah (profit and loss sharing), Musharikah (joint venture) and Ijara (leasing) modes of financing for investment under the guidance of National Fatawah Committee of Malaysia. The first call for separate Islamic bank was made in 1980, in a seminar held in the National University of Malaysia. The members who attend had passed a decision requesting the government to create a special law to setup an Islamic bank in the country. Thereafter, the government had set up a National Steering Committee in 1981 to study legal, religious and operational aspects of organized an Islamic bank. The committee...
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...A review on cloud computing security issues & challanges F. A. Alvi1, Ψ, B.S Choudary2 ,N. Jaferry3 , E.Pathan4 1 Department of Computer Systems Engineering, QUEST Nawabshah, Sindh, Pakistan 2 Department of Computer Systems Engineering, MUET Jamshoro, Sindh, Pakistan 3 Department of Computer Systems Engineering, QUEST Nawabshah, Sindh, Pakistan 4 Department of Electronic Engineering, QUEST Nawabshah, Sindh, Pakistan Abstract The new developments in the field of information technology offered the people enjoyment, comforts and convenience. Cloud computing is one of the latest developments in the IT industry also known as on-demand computing. It provides the full scalability, reliability, high performance and relatively low cost feasible solution as compared to dedicated infrastructures. It is the application provided in the form of service over the internet and system hardware in the data centers that gives these services. This technology has the capacity to admittance a common collection of resources on request. It is proving extremely striking to cash-strapped IT departments that are wanted to deliver better services under pressure. When this cloud is made available for the general customer on pay per use basis, then it is called public cloud. When customer develops their own applications and run their own internal infrastructure then is called private cloud. Integration and consolidation of public and private cloud is called hybrid cloud. But having many advantages for...
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...more complicated and customized securitization product. Mostly, the enterprises listed in OTC market are SMEs in the early growth stage, with underperformed corporate governance, management and unpredictable profitability. As a result, the risk of OTC securities, particularly the market risk turns out to be relatively high. With the expansion of GEM and the growth of regional OTC markets, transaction explodes in volume. Therefore, it has become an important issue for the domestic and abroad securities legislation research and practice how to ensure the OTC market sustainable development and protect the investors’ interest. In recent years, although Chinese scholars had conducted in-depth research on the OTC market's regulatory system and learned a lot from foreign market about OTC market construction, there are still problems to further clarify. On our securities practitioners opinion, we comprehensively use the knowledge ranged from civil law, economics sociology to practical experience, study and analysis the OTC market regulation. We will discuss the problem through six thorough sections. The first part analyzes the fundamentals of OTC market establishment, and we particularly contemplate the OTC legislate characteristics. Firstly, we analyze the characteristics of OTC markets, and compare the concept of OTC market, capital market, property ownership market with over-the counter market, in order to clearly define the OTC market. We believe that the OTC market is independent...
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...business organization as it helps its users make decisions. Different accounting principles grew out of the divergent economic and social environments of various nations and regions. Difference among national accounting become more disconcerting when trade barriers between nations were reduced due to international cooperation developments. Efforts have increased during the past decade to move nations toward using international standards. The International Accounting Standards Board (IASB) is an organization that regulates the accounting standards which are accepted globally by almost all the countries in the world. This paper will first discuss the history of IASB. Next it will explain the structure of IASB. After that, the paper will talk about how International Financial Reporting Standards (IFRS) are created. Finally, it will describe the effort to converge IFRS with Generally Accepted Accounting Principles (GAAP). History of IASB International Accounting Standards Board was first known as International Accounting Standard Committee (IASC) which existed from 1973 to 2001. It was responsible for developing the International Accounting Standards (IASs) and promoting the use and application of these standards. After nearly 25 years of achievement, the IASC concluded that it must find a way to converge between national accounting standards and practices, and create high-quality global accounting standards. To do that, IASC saw a need to change its structure in order to...
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...Thinking big is all the rage these days with U.S. money managers. Many are hiring high-profile economists to help them better navigate global economic and geopolitical events. Hedge funds and other institutional investors are tapping so-called macro thinkers like economists Martin Feldstein, Henry Kaufman and former Federal Reserve Chairman Alan Greenspan at a time when fundamental analysis is often being overwhelmed by big-picture political and governmental risks. This year alone, hedge fund EQA Partners brought on former Federal Reserve governor Randall Kroszner, and Brevan Howard, a British-based hedge fund, hired Shelley Goldberg, a former commodities strategist at Nouriel Roubini’s Roubini Global Economics. Yet with the mediocre performance this year of macro funds that make wagers on big-picture events, it is surprising that even more narrowly focused hedge funds keep turning to famous macro thinkers for advice. Skeptics say it may simply be a case of fund managers looking to find cover for positions they take by bringing on a famous name to justify their moves to investors. Indeed, it’s been a frustrating year even for the best investors, not just managers of macro funds, which are down more than 1 percent year-to-date, according to Hedge Fund Research. The overall hedge fund industry is up a meager 5 percent, roughly half of the gain posted this year by the benchmark Standard & Poor’s 500 index. The rough time for hedge funds is showing up in some high-profile...
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...Examples | | |Of the Theories |Of the Theories |Of the Theories | | | | | | |Efficiency Theory |The idea is that investors are so |Information not reflective in the |The Facebook IPO of last year is a | | |competitive in the use of |stock price provides an investor |good example of the need for | | |information regarding a firm that |with opportunity to exploit the |efficiency market theory practice. | | |their trading behaviors bid away |value of the new information until |Specifically, four major | | |firms ability use information as |all gains are competed away (Ball, |underwriters Morgan Stanley, | | |value added to returns. Thus, the |2002). |Goldman Sachs, JPMorgan, and Bank | | |investors bidding process |Information is treated as a highly |of America, provided new | | |instantaneously takes into account |valued commodity for all investors |projections of Facebook’s financial| | ...
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...course materials, and take quizzes and exams. Your "Course ID" is: hervani46262 Make sure that you purchase only the textbook with the ISBN# provided below. Do not buy "Used" textbook or any other textbook with different ISBN#. If you purchase a "Used Textbook", you will not have an "Access Code" or if you purchase a textbook with different ISBN# than listed below, then you will not have a valid "Access Code" and will not be able to register for this course. Your "Access Code" comes from the textbook that you purchase (or purchased separately on line). The website to register is: http://pearsonmylabandmastering.com/ and follow the instructions. REQUIRED TEXTBOOK: Roger LeRoy Miller, Student Value Edition for “Economics Today: The Micro View” plus NEW MEL/ETX SAC, 18/E, (ISBN-13: 9780134004952), Publisher: Prentice Hall, Copyright: 2015. You must also click on the Course Syllabus so that you can have a...
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...The film Inside Job offers in-depth evidence of the complex relationship between government and business by showing how business under the auspice of capitalism and government under the mantle of democracy is collusive and incestuous in their ultimate pursuit of profit and power. The film clearly captures the systemic corruption of the United States by greedy and morally unbalanced industry leaders and their cohorts who engineered a financial catastrophe in 2008 not seen since the great depression. The film’s writer and director Charles Ferguson contends that the collapse of the financial industry could have been prevented had there been more regulation of Wall Street. He clearly establishes his line of reasoning through a series of interviews with many of the major players in government and the financial industry who indirectly and in some cases directly contributed to the financial fiasco of 2008. The financial collapse was caused by three main contributing factors; first, a toxic sub-prime mortgage market engineered by the financial industry; second, government’s failure of regulatory enforcement of the financial industry and Wall Street; and third, a collusive relationship between business leaders and government officials elected to curtail the same crisis they helped create. The financial collapse of 2008 resulted from a toxic sub-prime mortgage market engineered by an out-of-control industry that led to its inevitable implosion. In September 2008, the global financial...
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...Statement of Accounting Concepts SAC 3 (8/90) Qualitative Characteristics of Financial Information Prepared by the Public Sector Accounting Standards Board of the Australian Accounting Research Foundation and the Accounting Standards Review Board Issued by the Australian Accounting Research Foundation on behalf of the Australian Society of Certified Practising Accountants and The Institute of Chartered Accountants in Australia and by the Accounting Standards Review Board The Australian Accounting Research Foundation was established by the Australian Society of Certified Practising Accountants and The Institute of Chartered Accountants in Australia and undertakes a range of technical and research activities on behalf of the accounting profession as a whole. A major responsibility of the Foundation is the development of Statements of Accounting Concepts and Accounting Standards. The Public Sector Accounting Standards Board is one of the boards of the Foundation. The Accounting Standards Review Board was established by the Ministerial Council for Companies and Securities. It has responsibility for the development of Approved Accounting Standards for application by companies, and for the development of Statements of Accounting Concepts and Australian Accounting Standards. Copies of this Statement are available for purchase from the offices of the Australian Accounting Research Foundation, 211 Hawthorn Road, Caulfield, Victoria 3162, Australia...
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...accepted because some of these countries, for instance China, have a preference of having a son as the first born. With so much value place upon males, many soon-to-be parents living in these countries are hopeful that their birth child will be a male. Many pregnant couples are doing whatever they can, and with the help of new technology, to ensure that they will not give birth to a female baby. In fact, evidence has shown a substantial increase in female-selective abortions since the 1980's in those countries already practicing the abortion of female fetuses. Throughout the course of time, these countries have seen an increase of female to male sex to birth ratios. The effects of modernization in patriarchal countries, which includes the economic growth and the advancement of technology, are major causes for the increase of female-selective abortions. Even though...
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