Accounting Theory DB Essay Example | Topics and Well Written Essays - 750 words

Accounting Theory DB - Essay Examples of the dissidents decision, I too changed my opinion based on the fresh insights into the matter shown by the chief financial officer and agreed with the dissenters decision of using the current rates as they would give a truer picture. The current value of the restructured debt would be more(prenominal) apparent using the dissenters method. SFAS 115 was as well as brought up immediately in which marketable equity securities were to be offered either at a clean-living or the current market value. My opinion on this was sought for its impact on objectivity and bias. I preferred using the market value and my response was acknowledged for its correctness. I was informed of a refreshed standard which would only allow FIFO to be used as catalogue and I was asked somewhat its usefulness in terms of verifiability. I agreed with the new standard which was then explained by the CFO, Mr. Washington, as being more verifiable due to elimination of dou ble calculation if both FIFO and last in first out were used.Majority of my suggestions in the exchange of emails in the activity were right. I had a tendency of going for the majority in the first problem but on reflection the dissenters decision seemed more appropriate as using the current discount rate would affect the financial position of the smoke in a positive way. My instinctive response was of using the current market value or a fair price of the securities on offer in the market was correct. Using FIFO for inventory as a sole criterion in the new standard was also an appropriate decision. moving-picture show to accounting theory does influence reasoning power as one can make a more appropriate choice as and when required during a corporations financial formulation and implementation. Knowledge of the minimum standards set up by the SEC (Securities and Exchange Commission) and FASB (Financial Accounting Standards Board) helps in making pertinent decisions which can influ ence the success or failure of a corporation. These regulatory bodies ensure transparency and consistency in