Assignment 1&2 – If constituency support is necessary

Instructions:Assignment should be of 1,000 words each (2000 words in
total). Please use “word count” and include in report. Due date: 18-05-2016Assignment Question 1 (1000 Words)Read the following quotation from Miller and Reading (1986,
p. 64). If constituency support is necessary before particular accounting
approaches become embodied in accounting standards, does this have implications
for the ‘neutrality’ and ‘representational faithfulness’ (qualitative
characteristics that exist in
various conceptual framework projects around the world) of reports generated in accordance
with accounting standards? “The mere discovery of a problem is not sufficient to assure
that the Financial Accounting Standards Board will undertake its solution …
There must be a suitably high likelihood that the Board can resolve the issues
in a manner that will be acceptable
to the constituency—without some prior
sense of the likelihood that the Board members will be
able to reach a consensus, it is generally not advisable to undertake a formal
project”.Assignment Question 2 (1000 words)As Watts and Zimmerman (1986, p. 7) state, Positive
Accounting Theory ‘is concerned with explaining [accounting] practice. It is
designed to explain and predict which firms will and which firms will not use a
particular accounting method … but it says nothing as to which method a firm
should use’. Do you think that this represents an ‘abrogation’ of the academics’
duty to serve the community that supports them?General Instructions for both assignment questions
You should then respond to the statement by arguing a
position. Do you agree or disagree, explaining why. You should give
consideration to events in recent years that may have had an influence.