More than a numbers game: qualitative research in accounting

This article mainly discusses the development of accounting, including the initial stage of accounting and the later stage of the evolution of accounting into a diverse discipline, from which we can recognize the importance of accounting. In the middle of the 20th century, accounting developed very slowly in Britain, Researchers at that time focused on theoretical or technical issues of accounting rather than empirical research. But in the United States at the same time, accounting developed very rapidly. With the development of accounting, accounting in different systems and economic environment of the country, produce different effects. In the subsequent development, the concept of qualitative research was combined with accounting. In the future, the importance of qualitative research is obvious. Qualitative research can not only continue to flourish in the field of accounting, but also expand to other fields. This article mentions that the field of accounting has received an influx of ideas and researchers from different disciplines, which is helpful for research and problem solving. Accounting supervision of all aspects of people’s lives, with the integration of different concepts, such as Qualitative research, accounting should not simply be seen as a discipline focused on Numbers, but rather on the stories and meanings behind them., but more should pay attention to the story and significance behind the number. From this article, I learned the importance of Qualitative research in accounting. I believe that as a great discipline, accounting can be combined with more concepts to solve some more difficult problems in the future development.

Article 2

Fair value is used alternatively and has a certain array of conditions in which it is applied. Fair value can be applied continually as an entry value and it is an exit value that can be used as a part of the income. From the article in the priori approach, there are types of analysis that must be adhered to. They include valuation and stewardship. Historical cost accounting is based on several components and aspects. Two of the most important aspects are that earnings are a shock to trading in the open market but they do not represent shocks to value. Earnings are a reflection of the management in negotiating between markets which is a procedure of adding further stock to the current value.

Fair value measurements are in the text and it involves two questions. The first questions is whether shareholders get the exact value through exit value and the second is whether one can apply a value that can come up with other values for the shareholders which may be termed as matching. The text summarizes by claiming the narrator has laid claims to the properties of valuation of historical cost accounting which are not entitled in the discussion concerning fair values.

The text has lessons to be learn in financial accounting. The first and simple lesson is that it is not that simple to develop or sate a balance sheet to make the goal of valuation real. The second most important lesson is that historical accounting is less well that fair value due to the assumptions on the required returns equally.

Student number

The paradox of strategic management accounting explains the concepts of the SMA techniques and the aspects of it as a whole. The documentation includes details on seminal works, views based on resources, formulated strategies, eclectism, strategic management perspectives, and their practicability.

A literature preview of the strategic management accounting subject is part of the dominant discussion on the paper. The literature also studies the relation between SMA’s literature and actual practice conducted within it. Part of the practice includes development processes and strategies for products in the current era.

A discussion on SMA’s paradox is part of the sub-topics that are detailed in this management accounting documentation. From organizational structures and processes to the formulation of strategies, nothing is left out to provide a concise framework on strategic management accounting. The document shows that strategic management accounting is not just by itself but it is influenced by control in management, measurements in performances and management of knowledge.Limitations of strategic management accounting are also not left out as part of the information provided. The market, investors, and developers of the SMA projects are also explained in a section in this documentation Bill .

This also outlines the options for research that can be conducted in the future for SMA projects and system developments. Finally, the relationship between the literature of strategic management accounting and other kinds of literature related to the same main subject is explored and the integration of frameworks that are necessary for the field.

3

The research shows that for companies with government connections, the consistency of the published financial details is consistently lower than for firms without such links. Political connections tend to be an effective measure of accounting efficiency even after adjusting some widely used nation-level parameters, such as the total wide of bribery, or investor protection metrics, and for company-specific factors. Although relations are related to lower ex-post consistency receivables, the performance of prior accruals does not justify the tendency of a company to create a connection in a given time. Therefore it is the case that businesses with low performing receivables end up having political relations.

Two other alternative theories which are non-mutually exclusive are compatible with the findings. Secondly, it may be that linked businesses knowingly expose details of poor quality in an effort to confuse customers so that stakeholders can prosper at their expense. Nevertheless, it may be that related companies have a lesser need to commit time and effort to handle budgetary receivables because of the security they receive after relations are created. Although the first theory cannot be checked explicitly, there is evidence for the second. Past work also has shown that lower-quality accounting knowledge is correlated with prices. In particular, there is proof that the recorded income of poorer quality is correlated with increased debt costs only for the non-politically related businesses in the study. That is, businesses with political ties are confronted with little negative impact from their lower-performing disclosures

3

Student number

The latest technology in the area of accounting and auditing utilizes Blockchain Technology (BT). This system uses algorithms to proof transactions that are stored in the form of blockchains and kept across many computers. This technology has led to innovations around cryptocurrencies like bitcoins. Although this technology is disruptive in certain sectors in the economy, it is still expected to yield significant effects in the field of accounting and auditing.

The technology contains tools that are capable of delivering trust and transparency of different levels. The technology in a position to create records that cannot be changed and thus impossible to falsify. Another view about blockchain technology is that they create efficiency in the process of accounting and auditing. The contemporary audit entails the use of a lot of labor which is not efficient. On the other hand, blockchain technology is capable of providing a validated record of transactions. Moreover, smart contracts can be added in blockchains such that no human involvement is needed but the action being executed is the version of human being that is programmed.

In conclusion, the profession of accounting has undergone a series of transformation from ordinary bookkeeping to the current day blockchain technology which is being considered disruptive to the accounting industry. From such improvements in technology, the role of the accountants and auditors is slowly decreasing. Many more areas in accounting and auditing are expected to be affected in the future. Consequently, the accounting and auditing industry should embrace the technology for the purposes of coming up with comprehensive, concise and accurate financial reports.

3

critical reflective account

During this semester’s study, I not only learned a lot of professional knowledge from professors in class, but also learned more accounting knowledge in extracurricular tasks. In class, the professor always gives many examples so that we students can better understand those obscure accounting concepts. One of the things that impressed me most was the panel debate. That debate was no doubt very difficult for me I need to find a lot of relevant knowledge on the website to support my argument. From this process, I learned a lot about the attributes and advantages and disadvantages of bitcoin. In the course of a weekly reading assignment, I find myself learning a lot when I write a synopsis. To over view the knowledge we learnt from accounting theory and practice, the main thing I can conclude that is the tendency of accounting will shift away from technical way to people’s behaviour way. By understanding what should do, we should ask why and how we could improve and change it into a better way. When talking about accounting, the first thing we should know is the history of its development.

Group 4

Debate points
Simplicity of regulating cryptocurrecy
Are regulators ignoring cryptocurrency?
Legitimisation issues with cryptocurrency
Can existing regulatory framework be used?
Future of cryptocurrency

Simplicity of regulating cryptocurrency
Regulatory framework and fintech will take time to catch up with one another
Are regulators ignoring cryptocurrency?
IFRS has no view on status of cryptocurrency as a legal tender
Legitimisation issues of cryptocurrency
The anonymity makes traceability of transactions difficult
Can existing regulatory framework be used?
To some extent e.g. the impairment losses can be utilised for intangible asset i.e. cryptocurrency
What is it’s future?
It is more of a speculative asset rather than currency

US Financial Crimes Enforcement Network issued guidance on when virtual currency operators
Securities Exchange Commission and the Office of the Comptroller in the United States, have issued white papers and sought comments on how, and whether, current regulations should apply to fintech companies.’
Strategic Modelling supports methods of valuation
 Bitcoins can be traded through crypto exchanges
IFRS standards can be implemented although which itself requires to discover variation under intangible assets.
Bitcoin is currency which is people’s choice and free from the government regulations for its price fluctuation.

Points of exploration: Affirmative
Simplicity of regulating cryptocurrency
Are regulators ignoring cryptocurrency?
Legitimisation issues of cryptocurrency
Financial users are not in dark
Can existing regulatory framework be used?
What is its future?

Simplicity: what happens if the Bitcoin economy grows faster than the supply of bitcoins
Ignoring: some users will anticipate regulators targeting intermediaries and will act to avoid such scrutiny, just as criminals can pay each other in cash to hide illegal activities from financial institutions.
Financial users: The functionality of crypto exchanges is similar to stock exchanges
Legitimisation: Anonymity removed making a framework to continue in current economy.
What is its future: There is no consensus about an accepted pricing model of Bitcoin

Simplicity: In China, policy was broadly similar, requiring that Bitcoin     intermediaries implement know-your-customer registrations for account. it seems longstanding reporting  requirements can provide a level of compliance for virtual currencies similar to what has been achieved for traditional currencies.
 Ignoring:  These features render the conventional tools of financial regulators   largely ineffective by increasing the cost of identifying, monitoring and                   sanctioning market participants
Legitimisation: Using existing conceptual and regulatory framework to adapt  to , time loss is recovered
Financial users :An intangible asset is only recognised if it is probable that future economic benefits will flow to the entity and its cost can be measured reliably.it lacks due to acceptability by regulator 
What is its future: May not meet the long-term interests of financial market participants, global regulators may take more efforts to better understanding and effectively regulate cryptocurrencies.

Simplicity: Difficulty in imposing constraints by regulators Sheer quantity, geographical distribution and privacy rights of cryptocurrency
Ignoring:
1. For some Argentines, bitcoin users in Argentina trade $70,000-$80,000 over the counter per day. The use of bitcoin in Argentina is “Very real, people using bitcoin do not know technology, they are not financially savvy.” It solves problems for people
2. Virtual currency is defined under relevant Argentine law as “The digital representation of value that can be used for digital commerce and whose functions are to provide a medium of exchange, and/or a unit of account, and/or a store of value, but they are not legal tender, nor issued or backed by any country or jurisdiction.” On May 27, 2014, BCRA issues a statement stating that it does not consider bitcoin or other virtual currency to be legal currency
3. It solves immediate problems and it has the potential to democratize money
4. Bitcoin operates through the use of a blockchain. The basic premise of the blockchain is that every transaction gets added to a public register and assigns a unique code so that it is impossible to fake a transaction. Each legitimate transaction is verified by a network of computers. Thus, bitcoin is a “decentralised, anonymous, self-verifying and completely reliable register. It allows entities to safely transfer value without the aid of any bank or state government.”
Financial users:  Subjective application of IFRS
Legitimisation: Agreement on accounting language is a presiding issue that has not been resolved for normal currencies, as of yet
What is its future: Although the bitcoin market becomes unstable for a while immediately after the introduction of the future market over time the marketing becomes more stabilized than it was before

Simple: Bitcoin is not tied to any specialized payment system and can be more widely adopted than previous digital currencies, it’s a self-sustained system in contrast to prior digital currencies.
Ignoring: IAS8 allows an entity to use its judgement in developing an accounting policy that results in information.
Legitimisation : Before criticizing the bitcoin we need to let it prevail in the economy to see if it can be legitimising. 
Financial users: Some accountants contemplate the holdings of Bitcoin as possibly coming under IAS 16Property, Plant And Equipment, or IAS38 Intangible Assets.
What is its future: The future of crypto accounting will be complex and constantly evolving, but the role of technology has opened new opportunities to develop solutions that solve industry challenges.

References 
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Engle, E., 2016. Is bitcoin rat poison?. CCC, Volume 16, p. 340.
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