contemporary issues in accounting subject
MK778
CIAAssignment-Individual.docx
Case Scenarios: 1
‘The Evolving Dimensions of The Accounting Profession and The 21st Century Expectations’
(Jeremiah & Daferighe, 2019)
The dimension of the accountancy profession is undergoing an increasingly expanding and unpunctuated global evolution. These 21st-century twists, however, tend to pose an identity threat to the profession. The much-celebrated software substitution of the traditional roles of the Accountant coupled with the apparent professional cross-carpeting of non-accountants aided by these emerging digital initiatives appears to ‘take-over' the seat of the Accountant. The following roles were identified for the discussion.
|
Evolving Dimensions |
|
|
THE 21ST CENTURY PERSPECTIVE |
THE FUTURE IMPERATIVES |
|
The Accountant as a Corporate Pathfinder |
Embrace an enlarged strategic and commercial role |
|
The Accountant as a Guardian of the Corporate Model |
Develop a global orientation |
|
The Accountant as a Competent Communicator
|
Reinvent the talent pool |
Task 1: Explain minimum of ONE new skill set required for a modern Accountant from the list above or
from your own choice. (5 marks: Word count- 300-400)
Case Scenarios: 2
‘Two accounting theories that help create the system investors and managers use today’ : Positive and Normative Accounting Theories.
|
Text 1 |
Text 2 |
|
if an organisation has had a highly successful financial year, the next year they will have the financial stability to boost investor dividend payments. This theory would deduce that corporate growth causes an increase in shareholder remittance. |
if a corporation has previously boosted investor dividend payments, and is now looking to reinvest funds into the firm to ensure its future viability through corporate sustainability measures, then theory would point to issuing new shares as a source of funding |
Task 2: Identify a positive theory and a normative theory from the list above (Text 1 or Text 2) and justify your answer by referring to the differences between two theories. (5 marks: Word count- 300-400) Case Scenario: 3
AbdulSalam LLC’s financial position as of 30th September 2020 is as follows:
Statement of Finanancial Position
|
Equity and Liabilities |
OMR’000 |
Assets |
OMR’000 |
|
Share capital |
5260 |
Inventory : Raw Materials |
2500 |
|
Debentures |
1540 |
Inventory : Finish goods |
3000 |
|
Net Profits |
2500 |
Other assets |
3800 |
|
|
9300 |
|
9300 |
The company management has been decided the following ‘creative accounting’ measures:
a) Inventory: Raw Materials - Increase the raw material inventory by OMR 300 000 to represent low provision for obsolete raw materials.
b) Inventory: Finish goods – Decrease the finish good inventory by OMR 100 000 to represent damaged finish goods.
Task (3) Redraft the Statement of Financial Position as of 30th September 2020 to reflect the above
Creative Accounting measures. (6 marks)
Task (4) Comment on the findings of task (3) above and make relevant recommendations referring to the
below mentioned teaching nexus. (4 marks: Word count- 300-400)
The Practice of Creative Accounting on the Jordanian Banking Sector: A Case Study in the Northern Region (Al-Dalabih, 2017)
(Total 20 Marks)
The end
1 | P a g e
1 | P a g e
2 | P a g e
