Stewardship and Decision Usefulness

Assessment item 1

Short Critical Essays

Task

Question 1 - 750 words

Financial reports (and the conceptual frameworks on which they are based) can either embrace a ‘decision usefulness’ or ‘stewardship’ function. Define these two terms. Which of these functions has the IASB deemed more important in recent years? Critically evaluate whether the approach adopted by the IASB will lead to the provision of relevant and/or reliable information for all users.

Question 2 - 750 words

Identify the weaknesses of historical cost accounting. Were any of the alternatives to historical cost (CPPA/CoCoA/CCA) successful? In your response you will need to outline your criteria for success.

Question 3 - 750 words

Outline the key building blocks of conceptual frameworks. Conceptual Frameworks are yet to provide significant prescription in relation to measurement issues in accounting. Why do you think this is the case? Would you consider conceptual frameworks to have been successful in achieving their objectives? Justify your response.

Rationale

This assessment task will assess the following learning outcome/s:

• be able to critically evaluate attempts to develop and apply a conceptual framework.
• be able to critically appraise the objectives of accounting and relate them to the various concepts of accounting discussed in earlier subjects.
• be able to analyse the possible usefulness of alternative measurement systems to historical cost.

Presentation

The following points are a general guide for presenting assessment items.

• Assessment items should be typed.
• Use 1.5 spacing.
• Use a wide left margin. Markers need space to be able to include their comments.
• Use a standard 12pt font such as Times New Roman, Calibri or Arial.
• Left- justify body text.
• Include a separate title page with your name, student number, subject code, assessment number and assessment question. Include class time and tutor’s name if applicable.
• Number your pages (except the cover page).
• Use a header or footer with your name and student number on each page.
• Always keep a copy of your assessments. Both a hard copy and an electronic copy.
• Most importantly, always use your spelling and grammar checker, but remember that this does not pick up all errors. You must still manually and carefully edit your work.