5/26/2018 AC2101 S2 20132014 Seminar 1 Outline
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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
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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?
