"Many Accounting Prescriptions on How to Account Were Developed to Resolve

question 10

Essay

"Many accounting prescriptions on how to account were developed to resolve problems as they arose. ,hence the theory underlying those prescriptions also developed in a largely unstructured manner.This has led to inconsistencies in practice".J.Godfrey,et el,'Accounting Theory',7^th Ed.p.5.Discuss the quotation,including in your discussion at least three examples of inconsistencies in accounting practice.

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Definitions:

Punitive Damages

Financial compensation awarded to a plaintiff that goes beyond what is necessary to compensate for losses and is intended to punish the defendant for egregious conduct.

Illegal Penalty

A punishment or consequence for an action that is not legally authorized or that exceeds the bounds set by legal statutes.

Power of Avoidance

The legal ability to declare a contract null and avoid its obligations due to reasons such as fraud, misrepresentation, or other substantive grounds.

Contractual Capacity

The lawful capacity of an individual to engage in a contract that is enforceable.