Posted: November 6th, 2022

BUSM054 FINANCIAL REPORTING

BUSM054 2022-23 Sem A Assignment
SCHOOL OF BUSINESS AND MANAGEMENT
QUEEN MARY, UNIVERSITY OF LONDON
BUSM054 FINANCIAL REPORTING
2022/23 SEMESTER A
COURSEWORK ASSIGNMENT
The conceptual framework stated that accounting information should be
understandable, verifiable, comparable, relevant and faithfully represent
companies’ financial performance and position so that the users of the
accounting information can make judgemental decisions. Further, in recent
years the IASB has increasingly favoured the use of ‘Fair Value’ in its
standards.
Required:
In the light of the previous statement:
- Write an academic report to critically discuss the use of Fair Value
Accounting ‘FVA’ for valuing assets and liabilities in financial statements.
- Collect and visualise data from companies’ financial statements to
support your arguments. You also can download the data from datasets.
- Use relevant theory (theories) to analyse the motivation of companies to
adopt (or not to adopt) FVA.
The assignment should consist of no more than 2,500 words (excluding the
appendices/bibliography/references).
Submission
The assignment must be uploaded via QMplus, as a Word or pdf file. Please
ensure your ID number (but not your name) is clearly noted.
All assignments must be word processed and marks will be given for good
presentation. Poor presentation and poor use of the English language are not
marker-friendly and you will lose marks. The length of this piece of work should
be no more than 2,500 words (excluding the references), but it is quality and
not quantity that counts.
Submission Due date:
Week 7, by the end of November 11th at 15:00
Plagiarism
Plagiarism is “to steal from the writings or ideas of another”, it is copying or
presenting material from someone else’s work in your own written coursework
without citation or any indication that the material is a quotation (that is,
someone else’s words from books, newspapers, journals and other printed
sources).
BUSM054 2022-23 Sem A Assignment 2
You may well be using the Internet as a resource for your work, but you must
always reference the sites you use. Be very careful when you download
materials from the Internet: you must either quote material if you use it directly,
or put the substance in your own words. Copying from the work of another
student, or getting another student to write something which you hand in as
your own work, is also plagiarism and is subject to the same penalties as the
unacknowledged use of printed sources. Remember this is an individual piece
of work and plagiarism will be dealt with severely. You can find details of
Queen Mary’s assessment offences regulations online:
http://www.arcs.qmul.ac.uk/policy_zone/assessment_offencesregulations.pdf
Please also note that the university reserves the right to put submitted work
through anti-plagiarism software (the ‘Turnitin’ programme) to assist in finding
plagiarised text therein.
BUSM054 2022-23 Sem A Assignment 3
References
This is a research-based assignment and as far as possible you should refer to
appropriate books, professional journals and academic journals. All sources of
information should be fully cited in a list of references. Some possible sources
are listed in the appendix: most have been uploaded onto QMplus. These are
suggestions only, there is no requirement to read all (or any) of these sources.
Find (and use) others instead of (or as well as) these.
Academic accounting journals that you might find useful:
• AOS - Accounting, Organizations and Society
• AAAJ - Accounting, Auditing and Accountability Journal
• Abacus
• ABR - Accounting and Business Research
• CPA – Critical Perspectives on Accounting
• EAR - European Accounting Review
• AF – Accounting Forum
Professional Journals:
• Economia
• Accounting and Business
• Financial Management
A list of all the references used should be included at the end of your work in
list in alphabetical order of author surname.
References should follow the Harvard system. Guidance on the is available
on QMPlus at
https://qmplus.qmul.ac.uk/mod/book/view.php?id=653429&chapterid=66164
All references MUST be fully cited, even journal articles accessed online.
BUSM054 2022-23 Sem A Assignment 4
Other notes
• Your answer must be in report form, making suitable use of sub headings
• You must include a word count at the end
• Font size 12 (either Times Roman or Arial)
• Use paragraphs appropriately
• The coursework must be typed and double-spaced
• Do not rely solely on the internet for research
• Ensure that you answer the question
• Take care with presentation
• Insert page numbers
• You should not put your name on the coursework, or on the front sheet,
just student ID etc. as directed.
• Pay attention to spelling and grammar
BUSM054 2022-23 Sem A Assignment 5
Appendix –suggested (selected) readings (all available on QMPlus, apart
from Maynard chapter)
Please note these are merely suggestions, not required readings.
Introductory
Maynard textbook, Chapter 10.
Bromwich, M. (2007), ‘Fair values: imaginary prices and mystical markets – a
clarificatory review’ in P. Walton (ed) The Routledge Companion to Fair Value
and Financial Reporting, London: Routledge, pp. 46-67.
Hague, I.P.N. (2007), ‘The case for fair value’ in P. Walton (ed) The
Routledge Companion to Fair Value and Financial Reporting, London:
Routledge, pp. 32-45.
Mora, A., McGeachin, A., Barth, M., Barker, R., Wagenhofer, A., & Joos, P.
(2018). Fair Value Accounting: The Eternal Debate. Accounting in Europe,
16(3): 237-55.
Škoda, M., and Bilka, P. (2012). Fair Value in Financial Statements:
Advantages and Disadvantages, Studia Universitatis "Vasile Goldi" Arad
Economics Series, 22(2): 1-8.
Veron, N. (2008). Fair value accounting is the wrong scapegoat for this crisis.
Accounting in Europe, 5(2): 63–9.
Woods, M. (2004), ‘Fair value accounting’, ACCA.
More advanced
Benston, G.J. (2007), ‘Fair Value Accounting: A cautionary tale from Enron’, in
P. Walton (ed) The Routledge Companion to Fair Value and Financial
Reporting, London: Routledge, pp. 233-46.
Benston, G.J. (2008). ‘The shortcomings of fair-value accounting described in
SFAS 157’, Journal of Accounting and Public Policy, 27(2): 101–14.
Biondi, Y. (2011). The Pure Logic of Accounting: A Critique of
the Fair Value Revolution, Accounting, Economics, and Law, 1(1): Art. 7.
Bradbury, M (2008), ‘Discussion of Whittington’, Abacus, 44(2): 169-80.
(Note: this is a discussion of the Whittington paper listed below).
Georgiou, O. and Jack, L. (2011). In pursuit of legitimacy: A history behind fair
value accounting, British Accounting Review, 43(4): 311–323.
Gwilliam, D. and Jackson, R. (2008), ‘Fair value in financial reporting:
Problems and pitfalls in practice: A case study analysis of the use of fair
valuation at Enron’, Accounting Forum, 32(3): 240-59.
BUSM054 2022-23 Sem A Assignment 6
Haldane, A. (2012). Discussion of ‘Financial instruments, financial reporting,
and financial stability’ by Christian Laux (2012), Accounting and Business
Research, 42(3): 261-6.
Laux, C. (2012). Financial instruments, financial reporting, and financial
stability, Accounting and Business Research, 42(3): 239-260.
Laux, C. and Leuz, C. (2009), ‘The crisis of fair-value accounting: Making
sense of the recent debate’, Accounting, Organizations and Society, 34(6-7):
826-34.
Lee, TA (2008), ‘Review of ‘The Routledge Companion to Fair Value and
Financial Reporting’, Accounting and Business Research, 38(1): 93-6.
Penman, SH (2007), ‘Financial reporting quality: Is fair value a plus or a
minus?’, Accounting and Business Research, Special Issue: International
Accounting Policy Forum, pp. 33-44.
Power, M. (2010). Fair value accounting, financial economics and the
transformation of reliability, Accounting and Business Research, 40(3), 197-
210.
Ronen, J (2008), ‘To Fair Value or not to Fair Value: A broader perspective’,
Abacus, 44(2) 181-208.
Whittington, G (2008), ‘Fair Value and the IASB/FASB Conceptual
Framework: An alternative view’, Abacus, 44(2) 139-68.
Zamora-Ramírez, C. & Morales-Díaz, J. (2018). The Use of Fair Value
Measurement in Financial Reporting: A Literature Review, Estudios de
Economia Aplicada/Journal of Applied Economics, 36(2):489-514.