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ACC8000 Research in Accounting Practice Assignment

Questions:

a. Briefly describe the assumptions of traditional agency theory.

b. Explain how traditional agency theory has influenced two aspects of accounting (do not provide an explanation about linking performance measurement and compensation; choose two other aspects of accounting that traditional agency theory has influenced).

c. What influences have the assumptions of traditional agency theory had on approaches to the compensation?

d. Outline two criticisms of traditional agency theory.

e. Discuss one alternative theory to agency theory and explain the deficiencies in agency theory that the alternative theory attempts to overcome.

f. How does a stewardship focus influence the measuring and reporting of financial accounting information?

g. How does a valuation focus influence the measuring and reporting of financial accounting information?

h. Explain the conflicting viewpoints of pursuing stewardship and valuation usefulness simultaneously.

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