Current Issue In Accounting (Accounting Theory) Essay

Current Issue In Accounting (Accounting Theory) - Essay Example Accounting is considerably a measurement tool since it assesses the value and returns of the company in comparison to the costs. The measurement of fair values (FV) of assets is inclusive of numerous aspects, for example, market risk or credit risk. According to Schroeder, Clark & Cathey (2010) the U.S GAAP standards differ in specificity of the valuation models. Some corporations determine the fair value (FV) of their assets and liabilities as a net amount, and not them in their singularity. The Financial Accounting Standards Board (FASB) emphasizes that is imperative for corporations to associate their measurements on their business strategy approach (Schroeder, Clark & Cathey 2010). Part A: Measurement in Accounting Theory Measurement of financial statements encompasses the inclusion of accounting principles that will establish the true worth of the corporation of item (Schroeder, Clark& Cathey 2010). Some of the regulators of financial institutions argue that measurement of all f inancial instruments can generate predicaments in assessing the true value of the commodities. As such, measurement in accounting entails a collection of theories that conform to particular items but not a general formula. According to Christian and Musvoto (2011), there is no single approach to measurement theory. They assert that measurement theory in accounting can exist in two forms, which include â€Å"Representation Theory of Measurement† and â€Å"Classical Theory of Measurement† (Christian & Musvoto 2011). Representational measurement is what accounting standards are utilizing to in valuing the progress and items of an institution. Measurement models a. Historical cost Historical Cost entails recording the financial assets in the market value that was given to acquire it during the purchase period. The value of the asset is recorded inclusive of the liabilities that were considered during the exchange at their market values. The historical cost comprises of det ermination of the present value of the item after deducting the depreciation amount of the commodity over the years in use. The original value of the asset will be depreciated using two approaches either the â€Å"straight line method† or the â€Å"reducing balance method† (Walton & Aerts 2006). These depreciation adjustments will depend on the specification of the accounting principles applied by the company. The deductions on the assets of the institutions are made to the prior valuations and not the current values of the assets (Pratt 2011). The assets and liabilities held for trading functions is recorded under the market value method but the long-term financial products, for example, loans are measured under the historical cost approach. Advantages of Historical cost The asset is valued at the initial price and not at the market value thus making it easier to ascertain the useful life of the asset. Initial costs are better at ascertaining the true value of the com modity and an individual can prudently determine the gains from it (Walton & Aerts 2006). In addition, historical cost is easily comprehensive than the alternative measurement models since it entails adjustments to the consideration value of the asset. Subsequently, it is not intricate to calculate the historical cost, unlike other models since most of the costs have been determined. Disadvantages According to Walton &

Jury Trials and Plea Bargaining Essay Example | Topics and Well Written Essays - 1000 words

Jury Trials and Plea Bargaining - Essay Example Some of these issues have been addressed through a variety of initiatives but the perception still persists that a judicial system that is skewed towards the mighty, the rich and the influential have a built-in bias against the poor litigants and other members belonging to the lower strata of society. The view is that justice is not blind, instead, there is a tiered or layered dispensation of justice which favors the elite of this country and disregards the rights of the common poor people. As they say, justice delayed is justice denied, as the rich can exploit the loopholes in the system, hire the best lawyers and use all the means and devices to delay a trial by numerous postponements and appeals. This is the prevailing view today, which requires government action to remedy this bad situation in order to improve the administration of justice and restore the people's faith in the system. Discussion Court administration falls under the rubric of public administration and many people do try to improve its efficiency through various reforms and initiatives. Judges and the other court personnel, both at the trial and appellate tribunals, try hard to find new ways to process the cases more speedily through more efficient use of both judicial time and court facilities to avoid the so-called litigation crisis increasingly seen today and experienced by litigants (Swanson & Talarico, 1987, p. 40) which should translate to a smoother functioning and avoid these costly delays. The judicial administration has previously persistently resisted attempts at reforms due to a prevailing view that judicial independence is paramount regardless of however it works with the other government agencies, mainly the police, in the administration of justice. Its independence is a stumbling block at introducing reforms because any attempt to do so is interpreted or easily misunderstood as undue interference in the so-called separation of powers doctrine, it being the co-equal branch of th e other two branches of government, the executive and the legislative. This view has slowly changed over the years, as there is now an increasing realization that the sheer number of cases, both civil and criminal, have swamped the courts. This has necessitated a good number of initiatives which shifted the focus from adjudicative to administrative justice. De-clogging the courts – one good way to clear the courts is to prevent many less serious cases from even reaching the formal court system by dealing with it as early as possible while it is still in the pretrial stage. This is achieved by a number of ways like diversionary schemes, arbitration, mediation, plea bargaining and administrative penalties in an assembly-line manner which is utilitarian in nature, as contrasted to the previous rights-based theories of justice like the human rights and due process issues which are both inefficient, prone to delays and expensive (King, 2009, p. 186) because of economic considerati ons which trumped social considerations due to chronic budget deficits and other fiscal constraints today. Many of the rights of the accused are seen to be causing excessive delays, like the right to be presumed innocent, right to an attorney, right to remain silent, right to post bail and the right to file an appeal.