The two approaches of accounting research

The two approaches of accounting research The positivist approach and the critical approach are the two approaches of accounting research. This article explains the concepts of positivist approach and critical approach, and then explains some of the problems of these two approaches. This article discusses the inter-relationship between accounting research, accounting standards and accounting practice. Through the research findings, this article use the case of intangible assets to illustrates how accounting research impact on accounting standards. Secondly, this article shows how accounting standards effects accounting practice. Thirdly, this article explains the inter-relationship between accounting research and accounting practice. Introduction The positivist approach and the critical approach are the two methodologies of accounting research. Hooper, Davey, Liyanarachchi and Prescott (2008, p20) described that the positivist approach is generally considered to be a combination of induction and deduction. The traditional view for the positive approach to research is to understanding and solving problems. The traditional characteristics of the positive approach are empiricism, logic and causality. These characteristics are often referred to as ontological, epistemological and methodological characteristics of a research paradigm. Positive accounting research experiments to describe what is without making any value judgments as to how things should be. The positive approach has been important in recent years. The critical approach to accounting research does not provide a particular method or methodology for research but rather a dialectic and Socratic approach to the evaluation of knowledge claims (Hooper et al, 2008, p33). T he critical research focus on the accounting theory that is concerned with resolving conflicts between the corporation and general public. The only ideology is the belief in humanness and the concomitant and emancipation of humankind. Critical theory offers processes for the consideration and evaluation of knowledge claims without providing a single way forward for the researcher. These two accounting research approaches are not mutually exclusive but are complementary. Hooper et al (2008) states that the positive approach has a number of problems, such as lack of agreement on what the positive approach actually is; appeals to the authority of science but focuses on behavior and so on. The critical approach also has some problems, such as the critical research cannot generalize findings; critical research cannot predict or replicate studies. Both of these two theories have its own advantages and disadvantages, it is necessary to combine the two methodologies in actual accounting practice environment. Accounting research helps accounting standards setters and others understand the economic world, but accounting research does not seek prescriptions of techniques to make the world better. However, knowing what works and what does not work can help corporations or standard setters choose techniques that have the best chance of working in as yet untested situations. Accounting standards have been categorized on the basis of their nature into two categories: principal-based standards and rule-based standards. Hooper et al (2008) states that accounting standards are based on a set of principals and concepts. Intangible assets defined as non-physical and non-monetary sources of probable future economic profits accruing to the firm as a result of past events or transaction (Canibano et al, 2000). Intangible assets should be accounted and reported in the financial statement. Maines,  Bartov, Fairfield, and Hirst (2003) states that for pragmatic reasons, most research on intangible assets focuses on those intangibles, intangible assets generated by RD expenditures. RD expenditures data are widely available because RD expenditures must be disclosed separately under FASB No. 2, Accounting for Research and Development Costs. Because there is no such requirement for other types of intangibles assets. Canibano et al (2000) describes that control of the probable future benefits arising from the intangible investment is considered by most accounting standards setting bodies as a basic requisite for recognition. Lev and Zarowin (1999) suggest that intangible assets should be accounted for following the same methods applied for tangible assets, but at the same time some argument arise that there are significant differences between tangible and intangible assets which make it necessary to apply different criteria for the recognition and valuation of the latter (Hendriksen, 1982). According to the SFAC6, paragraph 25, the FASB (1985a) considers the ownership or control of the future benefits as the main requisite for the recognition of intangibles. If it is focus on the ownership of the benefits, then intangible assets such as human resource could be recognized. There is a new trend in accounting research, which seems to be providing strong support to reporting intangibles (Canibano et al, 2000). Accounting research suggests to use disclosures on intangibles assets and those intangibles expenditures have future much benefits, but that these future benefits are more like uncertain than those associated with conventionally recognized assets. Thus, there is some empirical support for the capitalization of estimated RD intangibles. Given research results, Maines et al (2003) makes the following recommendations: first, support the FASBs decision to add another project which considers the disclosure and recognition of information related to intangibles assets. Second, believe that the FASB needs to consider recognition of internally generated intangibles asset s, because current accounting standards require capitalization economic similar as intangibles assets acquired externally. Third, Despite our support for intangible assetss disclosures related to and possible recognition , we encourage the FASB to proceed carefully on disclosures and recognition information on intangibles, given significant uncertainties related to accounting research in this paticular area. Concerns related to this research include the following. Finally, while research documents associations between intangibles information and designs make causal inference difficult. All of the accounting research in this area is based on RD expenditures for data availability reasons. It is not clear how easily these accounting research results generalize to other types of intangibles assets. Accounting Standards play an important role in accounting practice. McCombie and Deo (2005) state that accounting standards provide the accountant with a guideline to reports economic transactions and events for an organization. The accounting standards are also described as a piece of delegated legislationparliament has given the power of making accounting standards to a body that has experts on it rather than developing the documents itself as a body of legislators (Ravlic, 2003). The number of companies that have to apply standards in preparing financial reports is therefore quite important. Macve (2010) states that audited accounts are part of an organization that defines the economic environment in a country, or across countries, and enables investors to have confidence in the system as a whole as one to which to entrust their money. This was justified by Edwards (1938) in his call for a revolutionary reform of UK accounting practice. It still seems as true today. In the view of the US SEC it is the overall regime of standards of corporate governance, accounting, auditing and enforcement in a country that lowers the cost of capital to firms in that economy and thereby stimulates investment and economic growth. This effect is probably greater than what any individual firm can achieve by improving its own accounting and disclosures (cf. Botosan, 2006). The accelerating growth of accounting practices over the years has changed the format of corporate annual reports. International Accounting Standards (IASs) and International Financial Reporting Standards (IFRS), along with other statutory requirements, have changed the way in which financial statements are reported (Gouws and Cronjà ©, 2008). All the information is generated by a diversity of accounting practices, all of which are therefore worth researching. Accounting research leads to an enhanced understanding of the fact that these practices are driven by two systems that provide the information included in corporate annual reports. This shows that practices peripheral to traditional accounting practices also have an important role to play, both for educational institutions and accounting. Accounting practices should not be seen in isolation (that is, only from an accounting perspective), as they are multidisciplinary in nature. Environmental practices and information, social practices and information, ethical practices and information, as well as management accounting practices and information, together with financial accounting practices and information, form the context within which reporting in corporate annual reports takes place ( Gouws and Cronjà ©, 2008). Accounting Research have made Accounting Practice more efficient and effective, but Accounting research and accounting practice are not always seemed to be synchrony. One of the great attractions of conducting applied accounting research in accounting practice is that the research topics extend beyond the normal boundaries. It brings worldviews into conflict, improves accounting practice, and raises doubts about professional social and values (Schiehll, Borba, Murcia, 2007). HENDRIKSEN (1982) corroborates this argument, adding that accounting theory may be defined as logical reasoning in the form of two principles that: (1) accounting research provide a general frame of reference by which accounting practice can be evaluated, and (2) accounting research guide the development of new accounting practices and procedures. However, some of the research shows results of accounting research have not led to changes in accounting practice; this may be caused by practitioners not accepting the research findings or a lag in putting new accounting theory into accounting practi ce. This has been an over-emphasis on a theory and the research results in some cases, and it is correct that standard-setters and practitioners have not accepted or have been cautious in using the accounting research results as a basis for new accounting rules and practices, such as market efficiency research. However, in other cases research appears to be quite useful to standard setters as they establish new rules and practices, such as earnings management research. Llewellyn and Sue (1996) states that theories for practice would place more emphasis on theory as a map or recipe or instructions manual which provide means by which we can do things in the world or cope with events. Auditing Practice, Research, and Education, A Productive Collaboration, published in 1995 through a joint effort of the American Accounting Association and the AICPA, set the goal of preparing a monograph documenting the successes of prior, less-harried times when collaborative efforts produced significan t insights and often solutions to challenging auditing problems (Bell and Wright, pg 178). They explain the rich heritage of practitioner or academician collaboration in addressing auditing challenges. The authors indicate the importance of a periodic review of academic research for use of those in practice. The monograph also calls for increased interaction with practitioners, the use of academic research fellows in practice, and integration of the research process into audit education (Anderson et al, 2003). Accounting practice depends on accounting research, and accounting research guide the development for accounting practice. Conclusion Both of the positivist approach and the critical approach has its own advantages and disadvantages, the best way to use accounting research is to combine the two methodologies in actual accounting practice environment. The inter-relationships between accounting research, accounting standards and accounting practice are Accounting research helps accounting standards setters and others understand the economic world, accounting research have made accounting Practice more efficient and effective, but accounting research and accounting practice are not always seem to be synchrony. Accounting standards provide the accountant with a guideline to reports economic transactions and events for an organization.

The Trebuchet Essay examples -- medieval siege machine

Used by castle commanders during times of peace to hurl roses to ladies during tournaments, trebuchets proved a deadly weapon in the field of ancient warfare. Flinging a wide variety of objects hundreds of yards, the trebuchet became the weapon of choice for laying siege to a castle. Its incredible range could often place it beyond the effectual defense range of the castle archers, thereby permitting the besiegers to destroy the defender's walls with little interference. During extended sieges, trebuchets were often used to hurl large quantities of dung, dead animals, and other such items to encourage disease throughout the besieged city. Trebuchets earned a reputation for being much more accurate and precise than their onager and catapult counterparts. Not only was this accuracy a benefit, but being based on rotational motion and leverage rather than torsion (spring power) and lacking in a throwing arm stop, the trebuchet proved a much safer alternative for the personnel operating it. Onagers and Mangonels would literally explode on occasion when the torsion proved too great or a crack developed in the throwing arm due to the rapid stops it experienced. All in all, the Trebuchet was a fearsome weapon of mass destruction during the Middle Ages, a force to be reckoned with. Trebuchets only lost favor when cannons emerged, and the primary benefit of the cannon that the trebuchet lacked was not in fact power, but rather mobility. Smaller, more maneuverable cannons rapidly overran the position of the trebuchet in most armies across the world. Warwolf, the legendary trebuchet built by the English Army to destroy Castle Urquhart, which was located in the Highlands of Scotland, on the shores of the also infamous Loch Ness. Par... ...elease and a more horizontal trajectory, with higher velocity. In an attempt to better understand the components of the trebuchet and to permit the viewer a better idea of the manner in which the firing of a trebuchet occurs, a trebuchet constructed entirely of K-nex was built this past week. The counterweight consisted of 5000 steel bb's wrapped in plastic and duct tape, while the sling itself was made of duct tape and twine. The remaineder of the trebuchet, including the throwing arm, were constructed purely from K-nex. Standing some 3 feet tall, this trebuchet could repeatedly launch a 2-3oz object in excess of 20 feet. Lengthening the sling proved valuable, increasing velocity and range considerably. However, a point was reached at which the sling length could be said to be optimized, and lengthening it further only created unpredictable release angles.

Porsche Exposed

Porsche 1. How does Porsche differ – operating structure, financial results, etc. – from other major European-based auto manufacturers? To begin with Porsche is a privately owned company controlled by the Porsche and Piech family. They hold all the 8. 75 million voting shares while mainly large institutional investors hold the other 8. 75 million non-voting shares. Despite the fact that stock exchange and analysts’ requests more frequent and more detailed financial reporting Porsche is not willing to meet these needs. Another questionable input is the management compensation that only depend on Porsches profitability from year to year and not the share prices. Porsche manufacturing is conducted in German but also in Finland which make them a global brand with a cost base mainly in euro. They want to keep it so despite the fact that 42% of its revenues come from sales in the US since they believe that the heart of the brand comes from its performance in manufacturing and engineering. Porsche is therefore, by far the most exposed company among other European-based auto manufactures to changes in exchange rates. While the other manufacturers increase their amount of natural hedging by conducting more manufacturing in their countries of large sales Porsche increase their put option hedging. According to their 2006 model year they are going to fully hedged all their sales. This is done even though Porsche has the largest US exposure among the manufactures. Their hedging strategy has been criticized for being more lucky than thoughtful. Porsche also differ with their extreme anti-debt attitude. Porsche have a strong competitive position and another aspect that is very specific for Porsche’s products is the exchange rate pass-through. They pass through the changes of exchange rate upon the final consumer. 2. Describe Porsche’s foreign exchange operating (economic) exposure. How has the company been managing this exchange rate exposure? Porsche’s exposure to the US is currently 42 % of it sales and this numbers are believed to increase with increasing sales. The sales’ to the UK market is also relatively large with 11 %. Therefore the largest exposures are towards the dollar and the pound. Porsche is not using any natural hedging even though this type of â€Å"hedging† is increasing among other major European-based manufactures. Porsche use an aggressive put option strategy to hedge against the US dollars and according to their model year of 2006 they are going to be fully hedged against their sales. They will achieve this by a three year rolling portfolio of put option contracts whit prices based on currency forecasts. 3. What methods are theoretically available to Porsche to manage or hedge its currency exposure? Why have these other methods not been used? If Porsche believe that their sales in US will prevail high they could do as the other manufacturers and start producing their cars in the US. If they do so they will match their sales with their costs in a beneficial way and that is how natural hedging is conducted. This procedure is probably quit costly to conduct but on the other hand this might create dollar debt that they could match their sales to as well. There is always a chance that this would affect the manufacturing and engineering skills. Another alternative that were very specific for Porsche’s products is the pass through of changes in exchange rate to the final consumer. Porsches has an approach to non debt but they could in fact use currency swaps to match their underlying exposure. But I don’t really know if Porsche has any debt that they could swap. 4. So, all things considered, what do you think of Porsche’s hedging program and strategy? What do you think they should do? I understand why Porches currency strategy has been widely criticized even though it has done very well. It must be a very expensive strategy to keep up and as the criticism has stated there is a belief that Porsche has been more lucky than skilled in their hedging. But what if they haven’t? I really think they should re-consider their no-debt statement to realize that there might be other valuable and less costly strategies out there. It feels like they just remember that they couldn’t lend money when they needed and not the fact that they lost a lot of money. This aspect could happen again if their predictions’ about the future is wrong. There is also always a risk when hedging all of the exposure but this need’ to be weighted to the win of hedging all of the exposure. Maybe there is a change that they could use a collar, swaps, loans or new manufacturing positions in their hedging. The magic is to find a suitable approach to match the exposure of the sales.

Free Essays on The Characteristics Of The Metaphysical Poets

What are the main characteristics of the metaphysical poets? (With reference to ‘The Flea’, ‘The Apparition’ and ‘To His Coy Mistress’) A characteristic is a distinguishing quality, attribute or trait applied to something to make it similar to something else. The two metaphysical poets that we will consider are John Donne and Andrew Marvell. Although these two poets were both writtig in the 17th Century both had completely different upbringings and experiences throughout their lives. Andrew Marvell was born in Yorkshire, on March 31st 1621 to the Rev. Andrew Marvell, and his wife Anne. When Marvell was three years of age, the family moved to Hull, where Rev. Marvell became lecturer in Holy Trinity Church. He was educated at the Hull Grammar School, and in 1633 he matriculated as a Sizar of Trinity College, Cambridge. Two poems by Marvell, one in Greek, one in Latin, were printed in the â€Å"Musa Cantabrigiensis† in 1637. In 1638 Marvell was admitted a Scholar of Trinity College, and took his B.A. degree in the same year. A few days after receiving his scholarship, Marvell's mother died. He remained a few more years in residence, leaving Cambridge only after his father's death, by drowning. In 1650, Marvell became the tutor of twelve-year-old Mary Fairfax (later Duchess of Buckingham), daughter of Sir Thomas Fairfax, retired Lord General of the parliamentary forces. At the Yorkshire seat of the Fairfax family, Nun Appleton House, Marvell seems to have written, over a period of about three years, most of his non-satiric English poems. Marvell, who had been a supporter of the king, Charles I, under the commonwealth, became a supporter of Cromwell. In the summer of 1657, Marvell tutored Cromwell’s nephew and ward, William Dutton, living at Eton. Starting in 1659, Marvell was elected M.P. for his hometown of Hull, and he continued to represent it until his death, Marvell was engaged in political activities, taking p... Free Essays on The Characteristics Of The Metaphysical Poets Free Essays on The Characteristics Of The Metaphysical Poets What are the main characteristics of the metaphysical poets? (With reference to ‘The Flea’, ‘The Apparition’ and ‘To His Coy Mistress’) A characteristic is a distinguishing quality, attribute or trait applied to something to make it similar to something else. The two metaphysical poets that we will consider are John Donne and Andrew Marvell. Although these two poets were both writtig in the 17th Century both had completely different upbringings and experiences throughout their lives. Andrew Marvell was born in Yorkshire, on March 31st 1621 to the Rev. Andrew Marvell, and his wife Anne. When Marvell was three years of age, the family moved to Hull, where Rev. Marvell became lecturer in Holy Trinity Church. He was educated at the Hull Grammar School, and in 1633 he matriculated as a Sizar of Trinity College, Cambridge. Two poems by Marvell, one in Greek, one in Latin, were printed in the â€Å"Musa Cantabrigiensis† in 1637. In 1638 Marvell was admitted a Scholar of Trinity College, and took his B.A. degree in the same year. A few days after receiving his scholarship, Marvell's mother died. He remained a few more years in residence, leaving Cambridge only after his father's death, by drowning. In 1650, Marvell became the tutor of twelve-year-old Mary Fairfax (later Duchess of Buckingham), daughter of Sir Thomas Fairfax, retired Lord General of the parliamentary forces. At the Yorkshire seat of the Fairfax family, Nun Appleton House, Marvell seems to have written, over a period of about three years, most of his non-satiric English poems. Marvell, who had been a supporter of the king, Charles I, under the commonwealth, became a supporter of Cromwell. In the summer of 1657, Marvell tutored Cromwell’s nephew and ward, William Dutton, living at Eton. Starting in 1659, Marvell was elected M.P. for his hometown of Hull, and he continued to represent it until his death, Marvell was engaged in political activities, taking p...

Breast Augmentation essays

Breast Augmentation essays Known colloquially as a boob job, breast augmentation surgery has become an increasingly common cosmetic surgery option for women worldwide. The medical term for breast augmentation surgery is mammaplasty but mammaplasty also refers to breast reduction surgeries. Breast augmentation involves the surgical insertion of a silicone bag filled with salt water beneath the natural breasts. The prosthesis offers the appearance of larger, fuller breasts while allowing the woman to keep her natural nipples. Surgical scars are in most cases hidden well. Women choose to have their breasts enlarged for any number of personal reasons. Breast augmentation is an invasive procedure and does involve some degree of risk that most non-surgical cosmetic procedures do not pose. However, the surgery is widely practiced in the United States by qualified physicians and is generally safe. Breast augmentation can offer a woman a renewed appreciation for her body, correcting problems such as asymmetry, post-pre gnancy sagging, age-related sagging, and a number of other issues that affect appearance. Like any cosmetic procedure, breast augmentation is an act of vanity. Breast augmentation therefore differs only in matters of degree from hair styling, wearing makeup, or whitening teeth. Women spend large amounts of money on beauty products in the quest to look their best. Breast augmentation surgery is one option for women who value the appearance of their chest. For some women, breast augmentation may be considered as a necessary career move. Exotic dancers, models, actors, and anyone in a profession in which appearance reigns will need to build the best body possible and breast augmentation surgery is the only means by which a woman can increase her cup size appreciably without gaining weight. Exotic dancers and nude models cannot pad their bras to achieve the illusion of larger breasts. Rather, their breasts must be a part of their bodies. Augmented...

International accounting and finance Essay Example | Topics and Well Written Essays - 4000 words

International accounting and finance - Essay Example International companies play a huge role in the global company and can have a powerful influence on the prospects and performance of several economies, especially those that are directly influenced by its business operations and decisions (Ray Whittington, 2007). Irrespective of their nature of operation, both domestic as well as international companies rely on the efficient management of their financial resources, wherein the financial management of the company can be defined as the management of the financial resources of a business organization so as to guide it towards the achievement of its financial objectives (Arthur Andersen, 1977). In this aspect, there are a few aspects, which are entirely applicable irrespective of the area or extent of operation of the company. With a view to improving the prospects of commercial business as the basis of the structure for the organization, the key objectives of managing the finances of the firm are to primarily generate revenue and profits for the business apart from ensuring the liquidity levels within the business. In addition, it is also necessary for financial management to provide the required strategies to help generate a healthy return on investment by assisting in identifying and mitigati ng all the risks involved in conducting the business by putting in a certain set of resources. In this respect, financial management is achieved for any firm through three main sections. Planning: in order to fund business operations, the management needs to be sure of the amount of funding available and the sums required to aid the needs of the business. Funding is required to invest in the company, its infrastructure, human resources as well as assist in the sales made over the credit (Barry Epstein, 2001). For longer terms, funding is also required to enhance the levels of productivity

Life of the silk road ( Tang Dynasty) Essay Example | Topics and Well Written Essays - 1000 words

Life of the silk road ( Tang Dynasty) - Essay Example Consequently, prompting some women start having male concubines, which during then were acceptable and even right. Since, this trend was evident from the empress to the simple in the society, though the latter due to their husbands’ dominion complied with their unions’ precepts. Political arena also included the female gender where in most cases men exhibited approval besides other numerous fields, which even to date men deem they are not womanly (Ya-chen 77). Gender issue in the Tang Dynasty had a liberal stand due to women’s freedom, which this study seeks to expound (Ya-chen 75). The entire society besides accepting the idea of divorce, it also allowed the widows to continue with their sexual life (Ya-chen 75). Hence, an implication that men’s control by then did not have strict rules (Ya-chen 75). This is because women had the courage to request for the termination of their marriages and even remarry, a factor, which the emperor supported. Hence, †Å"four daughters of the first emperor of the Tang Dynasty married twice, and six daughters of the second emperor of the Tang Dynasty married twice† (Ya-chen 75). This exhibited a liberated society whereby both genders despite having their distinct roles, love to them meant a quest for happiness and satisfaction. This is because of the women’s decline to be recipients of exploitative actions especially from their spouses thus; they had the freedom to define themselves besides deciding whom to cohabit (Ya-chen 75). In addition, the two genders in the kingdom where able to assume similar roles especially in the political arena (Ya-chen 77). This was contrary to the bordering dynasties, whereby they devalued the status of a female gender to extend of not having any say regarding the running of their states. Conversely, Tang Dynasty exercised equality especially in the political arena whereby women who exhibited distinguished character became government officers (Ya-chen 77) . Besides, these women had the power to decide or even plan about their destinies and what they intended to attain without consulting their husbands, for instance, during Wu Zetian’s reign (Ya-chen 77). This is evident from the then period’s women scholars, for illustration, Song Ruochao who was a female xushi and Yu Xuanji (poet) (Ya-chen 77). Studies contend, â€Å"Tang Dynasty is often depicted as a golden age for Chinese women, a period of relative autonomy and power prior to their subjugation under the Neo-Confucianism of the Song Dynasty †¦Ã¢â‚¬  (Lewis 179). Since, its trend entailed excessive interaction of both men and women where the latter who emanated from an affluent background some kept male concubines (Ya-chen 76). This was after women market had shifted from the streets to their households, a trend that was common with divorcees and widows (Lewis 179). However, this freedom yielded to the degrading of the female gender, which later the Buddhism r efuted sharply besides emphasizing on widows’ chastity. Because, the former dynasty’s liberty encompassed morals’ degradation coupled with women especially the courtesans sometimes silencing their men while arguing. This is because besides being arrogant, they were also proficient in martial arts; hence, their male counterparts did not dare to challenge them in the public (Ya-chen 77). However, some of the poor courtesans severely suffered especially those who sought