Advanced Financial Accounting

1
Advanced Financial Accounting
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Accounting theory

• The Financial Accounting Environment

Accounting Theory
Political Factors
Economic Conditions
Accounting Policy Making
Audit Function Compliance of Practice
with Accounting rules
Accounting Practice
Users of Accounting Data and Reports
3
Accounting Research Directions

• Decision Model Approach
• Capital Market Research
• Behavioral Research
• Agency Theory
• Information Economics

4
Research methodology

• Deductive
• Inductive
• Normative
• Descriptive

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Accounting Postulates

• Going Concern
• Time Period
• Accounting Entity
• Monetary Unit

6
Measurement Principles
Input-Oriented
Output-Oriented

• Realization
• Matching
• Conservatism
• Disclosure
• Materiality
• Objectivity

• Comparability
• Consistency
• Uniformity