Word limit 3000 words (15 Marks)
“Fair Value vs. Conservatism? Aspects of the History of Accounting, Auditing, Business and Finance from Ancient Mesopotamia to Modern China” by Richard H. Macve, in 2013 London School of Economics & Political Science (LSE)- Department of Accounting and Finance , November 20, 2013. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2389305 British Accounting Review, Forthcoming.
Refer to the above journal article and develop a critical review report on following aspects:
• Compare and contrast the two mainstream histories identified by Macve, i.e.
- ‘FAT is rationally derived from a basically coherent conceptual framework’
- ‘Conservative, historical cost based accounting …provide an anchor on which to base appraisal of firms and managers’ performance
• Are both these histories merely a myth? Provide your own opinion here but justify with examples and with references.
This assessment is designed to assist you:
• In gathering and integrating knowledge on the theories which you have learned from topics 4 to 7.
• In developing your learning through the application of the concepts covered in topics 4 to 7
• To critically evaluate attempts of the development and application of the conceptual framework.
• To critically appraise the objectives of accounting and relate them to the various concepts of accounting.
• To demonstrate your level of understanding and the level of your research efforts.