Tunku Abdul Rahman University College
Faculty of Accountancy, Finance and Business
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MBFA 5054 Theory of Accounting and Finance
Tutorial 1
THE ACCOUNTING HISTORY AND DEVELOPMENT
Question 1
Discuss five essential attributes of a good accounting standard.
Question 2
Compare a principles-based accounting standard with a rules-based accounting standard.
Question 3
Dye and Sunder suggested that, if companies were to be allowed the freedom to use either
domestic accounting standards or IASB standards, a "race to the bottom" situation whereby
each standard setter lowers its standards so as to attract companies and their managers away
from the other standard setter.
Required
(a) Examine whether you agree to the above suggestion.
(b) Contrast the above with a situation where IASB is the sole global standard setter.
Question 4
Many countries around the world have adopted, in whole or in part, IASB accounting standards.
Malaysia had adopted IASB standards fully from 1 January 2012.
What are the benefits and costs to a country of adopting IASB standards?
Question 5
(a) Analyse the possible obstacles to the convergence of accounting standards.
(b) Justify the arguments for convergence of accounting standards.
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Question 6
(a) Discuss IASB's main efforts/intiatives toward the convergence of accounting standards.
(b) Assess whether IASB's drive to date toward global convergence of accounting standards
has been successful.
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