AC100/ AC102/ AC104 - FINANCIAL ACCOUNTING

Class 1 (Week 2)

MT(2) Introductory discussion questions

These questions are intended to form the basis for class discussion. They are designed to
encourage you to use the recommended reading and your general knowledge to think about
accounting in its social, economic, and political context. There are no right answers; in
many cases your opinion, backed up by reasoned arguments, is likely to be as good as
anything you read in a textbook.

You should prepare short answers, preferably in note form, for your first class. Your
answers may be collected for marking by your class teacher, who will expect you to be
able to discuss them in class.

1. Who are the main users of published financial accounts? For what purposes do these
groups of people make use of financial accounts, and what type of information do
you think they are likely to require? Is this information necessarily financial?

2. In the context of your own national background, rank the groups of users of
accounting information, omitting managers, according to the priority that you think
should be given to their needs. Explain your reasons.

3. Choose three accounting conventions and explain their meaning and significance to
users of accounting statements.

4. When is accounting information useful for decision-making?

5. What are the advantages and disadvantages of uniform accounting standards?