5/26/2018 AC2101 S2 20132014 Seminar 1 Outline

1/3

1

Nanyang Technological University

Nanyang Business School

AC2101 Accounting Recognition and Measurement

Semester 2, 2013-14

Outline for Seminar 1:

Introduction to Accounting Recognition & Measurement

Learning objectives:

Review the purpose and need for accounting from the contracting and conceptualframework

Review the characteristics of accounting information Understand the concepts of accounting recognition, measurement, presentation and

disclosure

Acquire familiarity with basic measurement concepts and specifically, accountingmeasurement conceptsRequired readings:

Miller and Mosso (1983), Financial Accounting Measurement: Why Things MayNot Be What They Seem to Be,Financial Executive, December: 28-35.*

Scott: Chapter 1 The Conceptual Framework for Financial Reporting 2011: Chapters 1 & 3^ Webber (2000), New Math for a New Economy, FastCompany, Issue 31,

December, p. 1-8.*

* Available on course site

Available on ASC website

Seminar requirements:

Read the course syllabus and take note of the expectations and requirements forthe course in relation to seminar participation, term quiz, group project and final

exam.

1. Assume you want to measure the fair value of a real estate property (i.e., land &building) which the company currently owns. Applying the illustrative examplesin Miller & Mosso (1983, Figures 1-3), complete the table below:

Relevant Phenomenon Substitute Phenomenon

Relevant

attributeDirect Observation (Case 1) Estimation (Case 3)

Substitute

attributeEstimation (Case 2) Estimation (Case 4)

5/26/2018 AC2101 S2 20132014 Seminar 1 Outline

2/3

2

2. (a) For each asset below, provide the attribute commonly measured in practice.

Asset Attribute

Property, plant & equipment

Inventory

Short-term equity investment

(b) What attribute(s) are most commonly adopted in accounting?

3. (a) What unit of measure is most commonly adopted in accounting?

(b) Some academics propose to measure in money units of contemporary

purchasing power. Do you agree with this view? Discuss.

4. Aggregation is not meaningful if either different attributes are measured ordifferent units of measure are used.Do you agree? Give examples in support of

your answer.

5. What are the key issues or concerns raised by the Webber (2000) article?

5/26/2018 AC2101 S2 20132014 Seminar 1 Outline

3/3