Lesson 11 Understanding Accounting Standards Exercise Short answer questions 1. Please illuminate the demand for theory and give specific examples from your personal experience. 2. What is the purpose of accounting theory? Please discuss from both normative theory and positive theory perspectives. 3. What is accounting standards? Why do we need Accounting standards? Please based on specific cases to answer the question. 4. What is GAAP, how is it currently defined, and what is the outcome of the due process? 5. Please elaborate the role of accounting standards in enhancing the value of trust of accounting information. 6. Please find materials about IASC and discuss why IASC was reorganized into IASB? 7. What is International Accounting Standards? Is it really internationally recognized? 8. Please visit US congress website to find the public hearing documents dated on Feb. 14 by Sir. David Tweedie, and report the whole story of rule-based and principle-based. 9. Please find out about the inherent limitation of accounting information, trace out the driving reasons and discuss the resolving methods. 10. Please collect materials about Kelon case and comment how Kelon abuses accounting standards.