02 Accounting Standard Assessment Assignment Sample
Here’s the best sample of 02 Accounting Standard Assessment Assignment, written by the experts.
Question 1:
On April 30, 2018, Apple’s incomes in Greater China expanded 11% to $18 billion last quarter. Tim Cook, CEO of Apple said to the investigators that the company feel better than average about how they are doing in China. In this manner, it may analysts with sources in China, which is not so optimistic. The Chinese civilization faith on the iPhone X might be fixed in by its over the top value, which places this have to far distance from most buyers in China and by the forcefulness of nearby producers, for example, Huawei. The management of Apple designs the figure with the business deals. Also, they trust Apple’s piece of the overall industry may have been cut by a third or more over the most recent three years.
The issue is that in 2015, when the iPhone 6S was arrived in the market. Apple had a stellar year in China and Hong Kong. It sold 71 million telephones in the district, as indicated by information from UBS and Gartner. That height has been difficult to beat by another IT comapny. In Apple’s financial 2017, that production number was down to 49 million. Therefore, UBS experts Steven Milunovich and Benjamin Wilson gauge deals will decrease to 47 million in monetary 2018.
The management believed that it’s unsure to come back and hold their top position in 2015 as nearby brands have made up for lost time and overhaul cycles are extending. We expect a flattish market, plus or minus a couple of purposes of development relying upon the general market and item cycle. The UBS group told customers as of late, we trust Apple likely had 40-half offer with Tier 1 and 2 customers; we believe that figure is more like 20-30% today.
The issue is that in spite of the fact that China is a huge market, a great many people in it remain moderately poor by Western norms. There are 1.3 billion in China, yet just around 200-300 million of them live in the “Level 1” and “Level 2” urban communities like Shanghai or Beijing, that are sufficiently rich to bear the cost of iPhones. In order to, outside of those significant metro focuses, Apple has couple of wholesalers and promoters. Their competitive brands make broad utilization of promoters to impact buyer choices. Oppo, Vivo, and Huawei have more than 100,000 promoters each versus Apple with just 4,000.
In the meantime, Huawei and other top of the line Android creators have increased their amusement. They now have a 56% offer of the market, to Apple’s 37%. In 2015, it was Apple with the overwhelming offer, at 54%, as indicated by information from UBS and Gartner.
Since the achievement of 2015, examiners have been energetically anticipating a “super cycle” of updates from clients who need to swap their old telephones for another one. In any case, the super cycle keeps not happening, halfway in light of the fact that proprietors are keeping their iPhones for more and incompletely on the grounds that Apple continues propelling new telephones whose highlights are just peripheral changes over the more established models. As per the views of Rau et al (2015), the higher management of Apple has confirmed that the company had a made a series of wrong assumptions about their Iphone X as the company had witnessed a grand success of their Phone 8. The Iphone 8 had made promising signs in the first 6 months of the campaign. The annual report of the company witnessed a sharp rise of about 40% in the same financial year. During the first 3 months, it was reported that more than 11 million of shipments has been sent by Apple in China. Iphone had surpassed the sales margin of the previous model of Iphone.
However, since last two years, the revenue of the company in China is down by more than 50%. This report is considered to be one of the worst revenue collected in past several years. The Apple which held the top position in the market back then was pushed down to 5th position in the market.
As per the views of Filieri et al, (2017) on the other hand, the Chinese Smartphone are now closing there gap between them and Apple. Among Chinese smart phone makers, it is reported that Huawei happens to be the closest rival of Apple. This scenario was not highlight even in the last decade. One of the primary reasons of the popularity of Chinese smart phones is that it happens to be cheaper when compared to the Apple or even Samsung. The quality of these smart phones is also considered to be quite good enough, and the customers are getting value for their money. According to a recent report, Huwai has shipped more than 38 millions of units in the last year, while Apple had sent around 41 million of units. It is estimated that Huwai has enhanced growth more than 20% in a single financial year. Apart from Huwai, Oppo and Xiomi happens to be another top performer in the smart phone industry.
According to the financial report, China is one of the emerging countries that include lots of mobile manufacturing companies that offer good quality Smartphone. In addition, the market capital of Apple is reducing due to the rapid encasement of Chinese Smartphone manufacturing companies such as Oppo and BBK electronics. In addition, most of the Chinese mobile manufacturing companies are affecting the brand value of Apple and Samsung through offering cheap mobile phones. Apart from that, One Plus brand is one of the significant mobile phone that offers extreme features and facilities that can satisfy an Apple user also. In other words, the marketing planning of these Chinese mobile manufacturing companies are offering a compact smart phone that enable and retain top class customers. According to this article, the market share of Apple is 25% reduced due to the rapid expansion of Chinese smart phone market. Aside from that, Xiomi is one of the leading Chinese smartphone manufacturing companies that offers high quality graphics and compacted design to attract the customers as much as possible. Thus, this article also explained the contribution of the top notch Chinese Smartphone companies that offers extreme quality Smartphone to increase the market share and profitability (Plunkett, 2017).
According to Deegan (2014), this study outlines the impact of intense players in the setting of IFRS 4, a new International Financial Reporting Standard (IFRS) for Apple Company. A basic investigative request of the International Accounting standard setting process, utilizing Capture theory, uncovers a portion of the key players, examinations the encompassing discourse and its suggestions as well as surveys the results. An examination of little cross-segment of comment letters submitted to the International Accounting Standards Board (IASB) by one worldwide Accounting firm, one worldwide mining enterprise and one industry gather uncover the shrouded coalitions between capable players. As per Deegan (2014), using this capture theory, it is more effective to propose the regulations that are motivated through the forces of demand and supply. The Chinese smart phone manufacturing companies are applying the capture theory to attract the customers who are mainly attached with giant Smartphone organization, like Apple. According to Deegan (2014) the Chinese manufacturing company introduce Capture theory way to deal with deception accumulate the market demand and public attraction the accompanying, such as, (i) the authoritative reaction to the likelihood of administrative office legislative issues is to decrease the stakes intrigue bunches have in control. (ii) The risk of maker security prompts low-fuelled motivator plans for controlled firms. (iii) Consumer governmental issues may prompt uniform evaluating by a multiproduct firm. As a result, Apple group cannot hold their position as well as cannot manage their business with the competition among the Chinese Smartphone company like Oppo and Huawei. The capture accounting theory clarifies the primary expectations of planning directions. The people to be influenced by the controls are specifically engaged with the plan of these directions. In this way, there is sufficient portrayal of the legislators and in addition the intrigue bunches since the controls are drawn for their requirements. Therefore, the management of Apple need to focus on holding their market position, by utilizing the different accounting theories like capture theory, public interest theory and private interest theory.
Conclusively, this article critically reflects that market share of the Chinese Smartphone that reduce the annual profit of giant companies like Apple and Samsung. In this way, this article also examine the competitive advantages of different Chinese Smartphone that impact the gross profit of giant Smartphone companies like Apple and Samsung. This research article also analyzed market share and customer base of different Chinese Smartphone manufacturing companies such as Oppo, Vivo and One Plus (Sherman and Smith, 2014). Moreover, the market share of these Chinese Smartphone manufacturing companies includes top exchange trade and international shipping context that encourage high growth and customer attraction. Moreover, this article suggested competitive market share for existing MNEs for growth and development.
Question 2
Introduction:
All experts Organization must consider the ideas of people in common scheme as trying to force the interests of the callings they serve. Some endeavor to regulate these powers welcomes a range of useful difficulties. In the development of any profession such an activity is probable essential along with then as social orders and commercial centers change in degree and intricacy. The Public Interest Framework introduced in this paper empowers the International Accounting Standard Board (IASB), Chatter accounting associations has to focus on better review whether people in broad scheme is being served through the behavior of the business and its foundations. Therefore, this is proposed to give policymakers and investor with every more reliably evaluates a significant number of the issues right now wrangled at the national and universal levels. The obligations of the calling are proposed to ensure certain public interest. These interests fit in between the number of organization, the reliability of financial information, financial reasonability and the commitments that bookkeepers make to private organization.
Discussion:
The exposure draft is being introduced in the ‘public interest’
The professional accountants have to be focus on the financial, political and social ramifications of common society plot. Therefore, IASB defines about the activity of professional accountants; helping people in general conspiracy ought to be assessed against three criteria. These criteria are:
- Thought of expenses and advantages for society overall
- Adherence to fair standards and procedures
- Regard for social and moral decent variety
The first standard expects us to evaluate the general population enthusiasm for terms of aggressive and positive results for society in wide-ranging, perceiving that the professional accountant during its actions affects associations, capital markets, people and governments. The second replica expects to survey an alternative or move made in general interest; something must be hold positive characteristics of management, release support, and open responsibility. The third paradigm expects us to survey the degree to which any open intrigue issue or strategy can be connected properly and translated reliably starting with one society or locale then onto the subsequently. When, the discussion about Chatter accounting firm, this run from little and medium professionals to general, worldwide systems, Tourk et al (2016). Identify the requirement for flexibility in an organization of the three criteria.
Highlights on the areas of agreement and disagreement with the exposure draft and other comments letters
When the researcher imply that the requirement for professional accounting models, mean that the benchmarks must conclusion in significant, reliable information that is supportive for financial specialists, moneylenders, leasers and other people who resolve on capital portion choices. Therefore, the benchmarks must recognised in a stable function that will facilitate speculators to make a significant relationship of implementation across over the theory along with the business to get the goal that the nature and the Accounting calculation of the basic connections to the customer as well as which incorporates data that supplements the fundamental financial explanations, puts the displayed data in setting and encourages a comprehension of the Accounting theory connected. Such principles should:
- Be steady with a fundamental Accounting calculated system
- Require fixed Accounting approaches starting with one period then onto the next
- Result in almost the same Accounting by registrants for equal exchanges, by staying away from or limiting elective Accounting method.
In evaluating the nature of the IASB models, the researcher is applying these criteria on a standard-by-standard premise.
The comments letters utilise any of the arguments ‘for’ or ‘against’ regulation
Undoubtedly, the researcher is looking for guidance on any specialized issues emerging as for the IASB models. Therefore, we are trying to decide if preparers, evaluators and customers of money related proclamations have recognized specific issues in view of their involvement with the IASB gauges and whether they have created procedures for tending to those issues. We likewise would profit by the general population’s perspectives with respect to whether any of the benchmarks speak to a huge change over Australian Accounting Theory.
A basic issue in surveying the nature of the IASB measures will be whether they would carry a similar level of sincerity and resemblance that for the vital portion is given to Australia, Speculators under Australian GAAP. Therefore, the central point of the staff’s remarks to the IASB has not been on the contrasts between the proposed measures and Australian GAAP. Relatively, the staff concentrated on the nature of the proposed norms. The research of the distinctions, be that as it may, could fill in as helpful equipment for featuring what varying data may be given in monetary proclamations arranged utilizing IASB norms contrasted and Australian Generally accepted accounting principles budgetary proclamations. In the event that the contrasts between the IASB principles and huge GAAP. However, the money related position and working outcomes announced under the IASB guidelines might be hard to contrast and results revealed under Australia GAAP. In addition to, the capacity to make such a correlation is imperative for a speculator settling on capital assignment choices in Australia. Additionally, non-Australian ventures are particularly inside a similar industry (Tourk et al 2016).
Application of theories and Regulation:
Public interest Theory:
Backers of the public interest theories of control see its motivation as accomplishing certain widely wanted outcomes, which left to the market and would not be acquired. However, the direction is given because of the request from the public for rectifications to wasteful markets (Wang, C. 2014).
Private interest theory:
The theory provides that the directions are set of strategies motivated by powers of free market activity. The management is put on the supply side while the interest bunches on the request side. The theory proposes that control is produced by the business and that the target of directions is to make points of interest to the business concerned. This theory was produced in 1971 by Chicago theory of government and the private interest theory of direction (creator). This theory recommends that it is the business which outlines the commands to be embraced in the market. The government enables the partners in an organization to take part in basic leadership concerning financial issues that influence the segments of the economy.
The capture theory
The capture theory gives understanding into the nearby association that has a tendency to emerge between a government administrative organization between elected, state and neighborhood governments regularly make organizations intended to administer and direct particular businesses. Issues emerge when a managing organization acts to the greatest advantage of directed industry to the burden of the overall population (author).
Public interest theory is the most efficient for explaining the comment letter,
To accomplish this, IASB and its free standard-setting sheets create universal guidelines on morals, inspecting and confirmation, instruction along with open area money related revealing. IASB additionally issues direction to assist professional accountant in business, slight and medium practices along with the improvement of the accounting standard in creating countries. In every one of these regions, IASB wants to think about each of the three open intrigue criteria. The associated cases delineate how people in general scheme system are reflected in crafted by IFAC.
Standards Based Professional Standards―The guidelines delivered by the IASB, AASB and FASB are standards based. Global Standards on Auditing (ISAs), International Education Standards (IESs), International Public Sector Accounting Standards (IPSASs) and the Code of Ethics for Professional Accountants are explained in clear, succinct dialect open to and comprehensively material in various moral frameworks and societies all through the world. IASB has issued its inspecting benchmarks in a shape intended to get better the comprehension and usage of them, in addition, also to support understanding and consistency all through the world. Capital markets will profit by the enhanced appropriateness of the illuminated reviewing norms which are additionally intended for more precise interpretation into different dialects and their individual societies.
Impact Analysis― IASB is as of now building up an Impact Analysis process for the advancement of expert measures. While IASB procedure is construct principally with respect to a subjective approach, it contains strategies like money saving advantage investigations and administrative effect appraisals utilized by governments and different associations for creating open arrangement and guaranteeing that administrative activity is defended, proper, and practical. Effect Analysis will add to the advancement of excellent measures by giving an efficient and organized way to deal with getting data about the impacts of a proposed new standard on applicable partners. Effect Analysis additionally archives and conveys this data as a major aspect of its due procedure.
- Standard-Setting and Small and Medium Enterprises: In building up the Clarified International Standards on Auditing (ISAs), the International Auditing and Assurances Standards Board (IAASB) gives direction showing that specific parts of the review will differ with the size, unpredictability and nature of the substance. Particular SME contemplations deliver how to apply the ISAB in little substances. Regardless of whether there is a one inspector or a group of examiners, the Clarified IASB deliver these contemplations to help reviewers to remember the attributes that are applicable with the goal that the work performed is done in a proper setting.
Reference:
Deegan, C. (2014). Financial accounting theory (4th ed.). McGraw-Hill: Sydney.
Wang, C. (2014). Accounting standards harmonization and financial statement comparability: Evidence from transnational information transfer. Journal of Accounting Research, 52(4), 955-992.
Plunkett, J. (2017). Plunkett’s Wireless, Wi-Fi, RFID & Cellular Industry Almanac 2018. Houston, TX: Plunkett Research, Ltd.
Sherman, M. & Smith, T. (2014). Samsung v. Apple. UK: SEGA.
Yang, S. & Wos, A., 2017. Case Study 3: Co-create a Smart Phone Brand with Consumers via Social Media: A Case Study of Xiaomi in China. In Services Marketing Cases in Emerging Markets (pp. 27-34). Springer, Cham.
AlBarashdi, H.S., Bouazza, A., Jabur, N.H. & Al-Zubaidi, A.S., 2016. Smartphone Addiction Reasons and Solutions from the Perspective of Sultan Qaboos University Undergraduates: A Qualitative Study. International Journal of Psychology & Behavior Analysis, 2016.
Chen, G., 2017. Importing Accessories for Electronic Products from China to Finland: Case Product: Smartphone Cases.
Rau, P.L.P., Zhang, Y., Biaggi, L., Engels, R.A., Qian, L. & Ribjerg, H., 2015. How Large is Your Phone? A Cross-cultural Study of Smartphone Comfort Perception and Preference between Germans and Chinese. Procedia Manufacturing, 3, pp.2149-2154.
Tourk, K. & Marsh, P., 2016. The new industrial revolution and industrial upgrading in China: achievements and challenges. Economic and Political Studies, 4(2), pp.187-209.
Filieri, R. & Lin, Z., 2017. The role of aesthetic, cultural, utilitarian and branding factors in young Chinese consumers’ repurchase intention of smartphone brands. Computers in Human Behavior, 67, pp.139-150.
Oulasvirta, L. (2014). The reluctance of a developed country to choose International Public Sector Accounting Standards of the IFAC. A critical case study. Critical Perspectives on Accounting, 25(3), 272-285.
Yu, G., & Wahid, A. S. (2014). Accounting standards and international portfolio holdings. The Accounting Review, 89(5), 1895-1930.
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