Question 1
Despite so many criticisms by notable scholars over the last 40 years, historical cost accounting is still maintaining its position as the principal method of financial accounting and reporting. In light of this statement explain the real nature and benefits of historical cost accounting and briefly highlight its limitations during periods of significant price changes.
(Total marks: 33)
Question 2
Explain the term capital market research in accounting and briefly highlight its components? How would a researcher undertaking capital market research justify that a particular piece of accounting information is value relevant to investors?
(Total marks: 33)
Question 3
It has been argued by some notable researchers that the extent of regulation relating to financial accounting and reporting is excessive and should be reduced, however, with the passage of time the amount of regulation has increased. Describe and explain the main arguments raised by these authors for reducing accounting regulation and the response to these arguments given by the proponents of regulation.
(Total marks: 33)
Question 4
Explain the term critical perspectives of accounting and highlight the fundamental differences between the research undertaken by critical accounting theorists relative to the work undertaken by other accounting researchers.
(Total marks: 33)
Question 5
Authors of some recently published studies have claimed that as a result of the worldwide adoption of International Financial Reporting Standards, the structure and measurements of different elements of financial statements of companies in different countries has changed. Does the accounting procedures and practices these countries adopt will be consistent and comparable internationally?
(Total marks: 33)
Question 6
Differentiate between positive and normative theories of accounting. Explain management bonus hypothesis and debt hypothesis as the two main sources of incentives for managers’ choices between alternative accounting methods identified by positive accounting theory.

Question 1
Explain what is meant by the “Conceptual Framework of Accounting” and discuss the benefits advanced by accounting standards setters in support of developing conceptual frameworks. Explain whether it possible to achieve such benefits in practice.
(Total marks: 33)
Question 2
Describe and explain ‘Positive Accounting Theory’ and critically evaluate some of the criticisms posed by the opponents of this theory.
(Total marks: 33)
Question 3
Differentiate between historical cost accounting and current cost accounting and briefly highlight the strengths and weaknesses of the two accounting systems. Why does historical cost accounting fail to provide useful information during periods of significant price change?
(Total marks: 33)
Question 4
What is accounting regulation? Explain why is there a need for regulating the financial statements of companies in the current market environment. Your answer should include arguments both in support, as well as against, the regulation of financial reporting.
(Total marks: 33)
Question 5
Critical perspectives accounting theorists argue that “the financial reporting of companies can never be considered as objective or neutral.”
Write a response to the above statement in light of your understanding of accounting theory and empirical research findings.
(Total marks: 33)

Question 1
Explain positive accounting theory and critically evaluate: the management bonus plan hypothesis; the debt hypothesis; and the political cost hypothesis as the three main sources of incentives for managers’ choices between alternative accounting measures identified by positive accounting theory.
(Total marks: 33)
Question 2
Describe and explain the term accounting regulation and briefly highlight the main arguments raised by some authors for reducing accounting regulation and the response to these arguments given by the proponents of regulation.
(Total marks: 33)
Question 3
In light of your understanding of current accounting practice and research critically evaluate the following statement:
“The standardization of accounting standards on a global basis will be associated with the standardization of accounting practice worldwide.”
(Total marks: 33)
Question 4
Describe and explain the real nature and benefits of historical cost accounting and briefly highlight its limitations during periods of significant price changes.
(Total marks: 33)
Question 5
Briefly explain the critical perspectives of accounting and highlight the fundamental differences between the research undertaken by critical accounting theorists relative to the work undertaken by other accounting researchers.
(Total marks: 33)
Question 6
What is capital market research in accounting and how would a researcher undertaking capital market research justify that a particular piece of accounting information is value relevant to investors?