Reference no: EM132528264

UG 024 Contemporary Issues in Accounting Assignment - College of Banking and Financial Studies, Oman

Section A - TWO (compulsory) questions to be attempted

Question 1 - a. Different branches of accounting contribute to the decision making process of an organization from a different perspectives. It is a process of behavior that influence the policies and strategies of an organization. In this context

You are required to Define Behavioral Research and list down Birnberg and Shields Five branches of behavioral research? with examples. (Maximum 400 words +/- 10%)

b. A positive theory seeks to explain and predict particular phenomena whereas normative theories prescribe how a particular practice should be undertaken. In this context:

You are required to Define Positive Accounting Theory (PAT) and state the Agency cost with examples. (Maximum 200 words +/- 10%)

Question 2 - a. Estimates are revised when new information surfaces

ACER Travels purchased equipment on January 1, 2012 for OMR 40,000 cash and estimated salvage value was OMR 4,000. The equipment has an estimated useful life of 6 years and uses straight-line method of depreciation

i. Calculate the depreciation amount per year?

On January 1, 2015, after three years of depreciation, it was determined that the equipment has a useful life of 8 (Eight) years.

ii. Calculate revised depreciation amount per year?

b. In the contemporary business world, a firm has to adopt any one approach or progressively move from one approach to another approach to have sustainable strategy to exist in this competitive world. In this context:

You are required to Explain any two approaches of Social Responsibility Accounting? With appropriate examples? (Maximum 400 words +/- 10%)

Section B - One question (compulsory)

 a. Vibrant Constructions commenced business on 1 January 2014 as a Fixed assets. The capital in cash was OMR 80,000.

On that date, Vibrant Constructions purchased a machinery for OMR 48,000 and a machinery for resale at a price of OMR 24,000.

The machinery is leasehold over a period of 25 years and depreciated using the straight line/fixed instalment method.

The replacement cost of the machinery on 31st December 2014 was estimated to be OMR 44,000.

The machinery was sold on 1st July 2014 for OMR 36,000 and on the same day an identical machinery was purchased for OMR 28,000.

This was unsold at 31st December, 2014 and is estimated to have a replacement cost of OMR 34,000.

The Retail Price Index (RPI) at

- 1st January 2014 stood at 100,

- 1st July, 2014 was 105 and;

- at 31st December, 2014 was 110.

You are required to prepare a comprehensive Income statement for the year and statement of financial position at 31st December 2014 using

i. Historical Cost Accounting (HCA)'

ii. Current Cost Accounting (CCA, using replacement cost)

iii. Current Purchasing Power Accounting (CCPA)

iv. Historical cost accounting with adjustments for current costs (CC)

b. To represent the potential of employees in monetary terms we have to differentiate between the cost of human resources and value of human resources. In the above context

You are required to State the objectives and its importance of HRA with suitable examples. (Maximum 200 words +/- 10%).