Assignment brief

By using the regulatory discussions and relevant international accounting standards (IASs), you are required to provide a critical evaluation of the following areas of financial reporting.

i. Accounting for non current tangible assets

ii. Creative Accounting

Your assignment should aim to provide readers with comprehensive knowledge and critical reviews of these areas covering, for example:

• A knowledge of different accounting treatments in individual accounting standards

• A knowledge of implications of different accounting treatments on usefulness of financial statements

• Your own understandings of, comments on, arguments and contributions to the topic, such as key qualitative characteristics, true and fair view/fair presentation, creative accounting, etc..

• Any other important issues which you think should be addressed 

Assignment structure

Tangible Assets (IAS 16)

 Definition & comparison of different assets

 Definition & examples of depreciation and useful life of different assets

 Comparison of different methods in calculating depreciation

 Effect of depreciation on income statement

 Revaluation mechanism

 Definition of impairment (IAS 36) and effect on income statement

 Gain & loss on disposal

 Comparison based on industry or geographical area

Creative Accounting

 Brief history of creative accounting

 Definition of creative accounting

 Flexibility in accounting

 Purpose of creative accounting

 Motivation leading to creative accounting

 Different ways and examples in creative accounting

 Stopping creative accounting