ACCO 400—Accounting Theory

Discussion Questions for Week 11

1. “Ethics missionaries [professional ethicists] are driven by the assumption that

improving our moral lives is a matter of developing our conceptual understanding
and analytic acumen. The fantasy seems to be [for example] that if up-and-coming
accountants just knew a little more about ethics, then they would know better than to
falsify their reports so as to drive up the value of company stock [shares].”(G.
Marino, professor of philosophy.)
http://chronicle.com/weekly/v50/i24/24b00501.htm

“Can virtue be taught?” (Socrates, freelance Athenian philosopher)

Discuss.

The following questions might help you organize your thoughts:

2. Is ethics of, say, geography, accountancy, an area of expertise like, say,

geography (itself) or accountancy (itself)? Explain.

3. How can we train people (ourselves) to be better accountants?

4. What is the role of the profession? Do other institutions of society have a

role?
 ACCO 400—Accounting Theory
Discussion Questions for Week 12

1. How does the level of enforcement influence how companies apply financial
reporting standards?

2. What aspects of a legal (or judicial) system do you think are particularly relevant for
how financial reporting standards are applied?

3. How could culture, customs, or traditions influence professional auditor’s work?

Can you think of any examples?

4. The objective of IFRS is to provide “a single set of high quality” accounting

standards. How would you define “high quality” in accounting standard-setting?

5. Although the 1990s and early 2000s saw many discussions of convergence between
U.S. GAAP and IFRS, these discussions did not materialize beyond the convergence
of a few accounting standards (e.g., the standards on segment reporting, revenue
recognition, and leases are largely converged). Currently, the U.S. only permits the
use of IFRS by foreign registrants (i.e., foreign firms cross-listed on U.S. stock
markets). Do you think the U.S. will ever adopt IFRS fully for domestic companies?
Why or why not?