Advanced Accounting for Journal of Instructional Pedagogies

Question: Discuss about theAdvanced Accounting for Journal of Instructional Pedagogies. Answer: This paper solves the issues that arise from the article. The issues that are being solved are those of the advanced accounting. The first part addresses the accounting issues that are discussed in the article. The second part discusses the various accounting theories that are explained in the article. Accounting issues that have being addressed in the article include: Business risk-this is when the director s of the company make a decision that may affect the company negatively or where the event that occurred threatened the future of the business. a plan of recruiting 5000 CPA was never successful. This may make the business to operate at a loss.2) there is also lack of transparency at the company. The CA ANZ does not show detail about spending and revenue in the company annual report (Scott 2015). The CA ANZ accountant spend higher amount of money on the project contributing to losses and this made the company to initiate program of cost cutting . The CA ANZs tertiary level educations are all at risk due to the losses that the company experiences in the course of business operation. 2) In terms of the issues of accounting being discussed, what I disagree/agree with in the article are the following. In the article, it is true that there is lack of transparency in the company this is because the CA ANZ fails to reveal the detail of the total expenses and revenue (Schaltegger and Burritt 2017). The annual report of the CPA published during the month which acts as the benchmark also enlightened some forms of transparency issues in the company. I agree with the decisions of the executives of engaging in a project that is risky. These projects can make the company to spend higher amount of money but they always have long term benefits to the company. The CA ANZ will yield higher amount of profit from the business that are risky in the long run. Though, sometimes they might make the company to run at a loss in the short run which is obvious because in any business operation there must be a profit or loss. In case of the loss, the company should come up with suitable strategies in order to improve the operation of the business to ensure that the company event that causes the business to make losses are solved (Libby 2017). The decision of the company of reducing the number of the staff, outsourcing of the employees and slashing of the budget are the best idea as they will reduce the CA ANZ expenditure. This may make the company to make profit because the expenses will be lower than the revenue. 3) How the article is linked to theories/theory is well explained in the Unit of Advanced Accounting. Accounting theories- These are sets of methodologies and assumptions used in the application and study of FRP (Financial reporting principles). Going concern- this theory is evident in the articles. It states that when accounting of the business is being managed, the controller must understand the financial viability of the business. The assumption in this theory is that the business is strong enough to survive even in the future. In case the accountant realized that the business will fail in the future then he will state it in the financial statement of the business (Bublitz, Philipich and Blatz 2015). The annual spending of the CA ANZ is being stated in the annual report of the company. The report of the accountant should outline whether the company will operate in the future. Revenue recognition- this is the accounting principle that are in the GAAP that help in finding a particular conditions in which revenue should be accounted for or recognized. The company recognized the revenue after the performance of a specific event or project. From the comparison of the CPA disclosure and CA ANZ, it is clear that the company recognized both the revenue and expenses. The CA ANZ financial statement recognized both the expenses and revenues when they are realizable or realized by the company (Leong 2015). Consistency- this theory state that once the company selects an accounting method, it should be applied continuously over the entire accounting periods. There is a consistency in the financial statements of the CA ANZ. The company uses the same accounting standard where the revenue and expenses are being recognized for each of the financial year (Gaffikin and Aitken 2014). References Bublitz, B., Philipich, K. and Blatz, R., 2015. An example of the use of research methods and findings as an experiential learning exercise in an accounting theory course.Journal of Instructional Pedagogies,16. Gaffikin, M. and Aitken, M. eds., 2014.The Development of Accounting Theory (RLE Accounting): Significant Contributors to Accounting Thought in the 20th Century. Routledge. Leong, R., 2015. Structuring an undergraduate accounting theory course to enhance the learning experience of Australian students: Preliminary findings. Libby, R., 2017. Accounting and human information processing. InThe Routledge Companion to Behavioural Accounting Research(pp. 42-54). Routledge. Schaltegger, S. and Burritt, R., 2017.Contemporary environmental accounting: issues, concepts and practice. Routledge. Scott, W.R., 2015.Financial accounting theory(Vol. 2, No. 0, p. 0). Prentice Hall.