Word limit 3000 words (15 Marks)
“Fair Value vs. Conservatism? Aspects of the History of Accounting, Auditing, Business and Finance from Ancient Mesopotamia to Modern China” by Richard H. Macve, in 2013 London School of Economics & Political Science (LSE)- Department of Accounting and Finance , November 20, 2013. British Accounting Review, Forthcoming.

Refer to the above journal article and develop a critical review report on following aspects:
• Compare and contrast the two mainstream histories identified by Macve, i.e.
- ‘FAT is rationally derived from a basically coherent conceptual framework’
- ‘Conservative, historical cost based accounting …provide an anchor on which to base appraisal of firms and managers’ performance
• Are both these histories merely a myth? Provide your own opinion here but justify with examples and with references.

Rationale

This assessment is designed to assist you:
• In gathering and integrating knowledge on the theories which you have learned from topics 4 to 7.
• In developing your learning through the application of the concepts covered in topics 4 to 7
• To critically evaluate attempts of the development and application of the conceptual framework.
• To critically appraise the objectives of accounting and relate them to the various concepts of accounting.
• To demonstrate your level of understanding and the level of your research efforts.

Marking criteria

Assessment Item2 - :Marking Rubric

Criteria / Unsatisfactory / Satisfactory
Pass / Competent
Credit / Accomplished Distinction/
High Distinction / Marks
Clear description of both mainstream histories / Inadequate description of both mainstream histories / Basic description of both mainstream histories / Clearly describes both the FAT history of accounting and the rational evolution of conservative accounting practice / Student has produced a sophisticated description of both the FAT history of accounting and the rational evolution of conservative accounting practice / /5
Critical Capacity:
Whether the student has thoroughly evaluatedthe idea that both these histories reflect a myth of objectivity / The argument presented does not relate to the topic
Little or no attempt has been made to evaluate the myth of these histories / Discussion has been limited to a general report on accounting practice with very little evidence in the critical review report on the objectivity of fair value Vs conservatism / The report is relevant to the debate on the objectivity of fair value Vs conservatism. There is some attempt to form and opinion supported by evidence / The report discussion clearly addresses the issues raised in the task.
The report is highly relevant to the debate on the objectivity of fair value Vs conservatism. A sophisticated argument has been provided to support the opinion / /5
Academic Writing:Is the answer easy to follow and understand? / A Major improvement inthe report is needed.
There aremany errorsin grammar and punctuation which need correction.
The report style is inappropriate, the report isnot engagingand/or isnot easy to read / There aresome errorsin grammar and punctuation
The report isnot engagingand/or isnot easy to read. / The report is professionally presented
The majorityof the grammar and punctuation is correct / The report is professionally presented.
All grammar and punctuation is correct.
The report is written in an appropriate style; is highly engaging and has a clear flow.
All sections of the report have been included and correctly structured / /3
Student has used referencing system clearly and accurately. / The APA system has not been used to record cited sources in the reportand/or
Not all sources are cited and/or
No List of referencesand/or serious errors in the construction of this list. / The APA referencing system has been used to record cited sources in the report but have madesome major errorsin these citations and/or. / The APA referencing system has beenused clearly and accurately to record all cited sources in the report however minor improvements are necessary / The APA referencing system has been clearly and accurately used to record all cited sources in the report. / /2
/15

Requirements

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