Category Archives: Accounting Issues

Conceptual Revision

So many speaking for a need for a conceptual framework in accounting. Something like a constitutional document, providing one with the first principles in accounting, from which others may be deduced or evaluated deductively. Needing the first principles in order … Continue reading

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All but fair

In relation to “All in the taking“, concerning accounting principles being interpreted on the border, similar to the Criminal Code or the Income Tax Act, the issue was raised as to how auditors could be found at fault, when the … Continue reading

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All in the taking

Concerning the “principles-based = Canada = good” versus “rules-based = United States = bad” dichotomy, in relation to financial accounting standards, which may well be mythical, it seems that managerial attitudes remain the missing trigger. Whether any accounting principle, like … Continue reading

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Track Direction

Came across some overhead notes used in an Accounting Theory class, 2007. Some of the points made, in relation to the role of the accounting standard setter, plus relating to regulatory behaviours generally: • Standard setters and those affected by … Continue reading

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Capital, Leverage

Discussing concept of operational leverage in managerial accounting class. Mathematically being contribution margin/operating income. Idea that the higher the operating leverage, the more significant the effect of a percentage change in gross income. A business with high operating leverage having … Continue reading

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Over

Have written about the faded history of the century-plus close relationship between the United States and Canada in relation to the establishment of financial accounting standards. Largely all over, as of 2006, with the move in Canada towards International Financial … Continue reading

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Legislative Intervention

There’s a private in my boat and he wears Pins instead of medals on his coat Have written about how financial accounting standard-setting is a delegated legislative act. Any legislature can revoke such delegation, and opt to set financial accounting … Continue reading

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