ACC5AAI Mid-Semester test Part 2 Questions
Part A. Short answer questions (30 Marks)
Select any THREE of the following four questions related to the pre-reading materials
1. Apply Positive Accounting Theory to explain the research findings in Aboody &
Kasznik (2000)
2. Summarize the argument for and against IFRS adoption in Ahmed, Neel & Wang
(2013)
3. Review the research findings reported in Alomair, Farley & Yang (2022), has the
adoption of IFRS improved the value relevance of Saudi companies’ accounting
information Justify your answer.
4. Apply institutional theory to explain the findings in Ahmed et al. (2013) and Alomair
et al. (2022).
Part B. Professional judgement (10 Marks)
Despite the market’s increasingly urgent need for accounting guidance on crypto assets,
there has been no formal pronouncements to date. Dealing with crypto-asset accounting
therefore requires detailed understanding of both distributed ledger technology and relevant
accounting concepts. In the absences of further action by accounting standard setters,
holders of crypto assets may be unable to achieve the accounting treatment they consider
most appropriate.
Source: EY Insights, accessed on 1 April 2022 at https://www.ey.com/en_gl/financial_x005f?services-emeia/why-crypto-assets-are-high-on-the-agenda-of-accounting-standard-setters
Required
Discuss why cryptocurrencies held for own account does not meet the definition for cash or
currency (10 Marks)
