Practical Lessons in Applying Accounting Standards - Essay Example

Introduction One of the reasons why most writers have not been able to capture their reader’s interest is due to their lack of correct use of rhetorical analysis. In order to create an effective written speech or present one’s ideas in writing, it is imperative to understand the rhetorical situation that one addresses. Rhetorical situation offers an aid for the writer to deliver contents that appeal to and enriches the knowledge of the target audience. First and foremost, there is need for the author to understand the background of the target audience. Effective writing lies in the ability of the author to communicate with his audience. Different genres of writing can therefore be used to convey messages to different types of audiences for achievement of the author’s objectives. For instance, shopping lists are used to remind shoppers on what to buy as journals are used to deliver information to the public about particular topics. The right choice of the media is dependent on the understanding of the audience. In an attempt to develop a good understanding of rhetorical analysis, I analyzed a financial report by Bruce Pounder entitled “Practical Lessons in Applying Accounting Standards”. The case study by the accounting editor carries practical lessons that target accountants. The author got the idea of publishing the work after getting in an online discussion with colleagues about the manner in which United States Generally Accepted Accounting Principles (GAAP) need to be applied to specific real world situations (Pounder, 2009). The publication presents the thoughts and refined discussion consensus of Pounder and his colleagues on the issue. He addresses the key questions they had discussed in their online discussion and the three main points that he thinks are core to arriving at such a conclusion. Although “Practical Lessons in Applying Accounting Standards” targets accountants who are already engaged in the accounting field, it is also helpful to those pursuing careers in accounting and business related fields. The author discusses fundamental concepts that would prepare learners for the real world of accounting practice. In addition to providing insightful knowledge and skills that the author has in the field of accounting, he alludes to theories and researched frameworks of other equally knowledgeable accountants to provide a comprehensive look at his subject. This essay focuses on some of the rhetorical appeals and strategies that Pounder uses in his work. It first identifies the instances of comparison and contrast, then examples and finally causes and effect as used by the author. The work then goes further to discuss examples of logos and ethos as presented in the publication. Finally, the task explains how Pounder uses these strategies in “Practical Lessons in Applying Accounting Standards” to achieve his purpose. Comparison and Contrast Pounder uses comparison and contrast to effectively show how the United States accounting for income tax purposes varies from financial accounting. Comparison and contrast is used as a tool to illustrate different ideas and opinions. Comparison indicates the points of common ground for two ideas while contrast shows difference in opinion. Comparison and contrast can be used at the same time or differently. Comparison and contrast in “Practical Lessons in Applying Accounting Standards”, helps the audience in understanding and accepting a new idea in terms of an old idea. He does this with a concern over the differences yet income tax is a representation of the reality that should and must be reflected in the financial accounting of the company. Using this contrast, Pounder and his online colleagues manage to answer the fundamental questions regarding the application of financial accounting standards in the United States GAAP to real situations involving corporate income taxes (Pounder, 2009). The author contrasts his strong conviction on the right accounting approaches with the prevailing practices in the American GAAP. Unlike the situation he believes would be without GAAP, strict adherence to the guidelines provided in GAAP violates important ethical and legal principles of financial reporting (Pounder, 2009). The author believes that GAAP guidelines contrast the true spirit of financial accounting that requires that financial statements be presented fairly and that there should be no misleading of the accounting statements to its users. The use of contrast and comparison in this piece enables readers to realize the perceived weaknesses of the GAAP guideline. “Practical Lessons in Applying Accounting Standards” provides accountants and accounting students with indicators of the pitfalls they need to scrutinize and be mindful of in their endeavors to use the GAAP guidelines to enrich their accounting knowledge. It is a helpful and much-needed pointer that allows targeted audience to engage their thoughts on the issue of legal and ethical principles of accounting that are allegedly breached by the GAAP. Exemplification The author uses exemplification in the article, “Practical Lessons in Applying Accounting Standards” to show that despite the flaws in GAAP that may mislead accountants and accounting students, there are solutions within the same paper that could solve its imminent problems. Exemplification is the use of examples to illustrate a claim or argument. The author gives an example of Section 855-10-50 of GAAP that provides solutions to claims that GAAP leads to misleading financial accounts and statements (Pounder, 2009). The section says that some non-recognized subsequent events may be of nature that needs to be disclosed before to keep the financial statements from being misleading. It states that for such subsequent events, the business entity shall disclose the nature of events including estimates of its financial effects. In the event that the estimates are not available, a statement that the estimates cannot be availed shall be provided. Exemplification used in “Practical Lessons in Applying Accounting Standards” is helpful in eradicating the perception that the whole GAAP guideline is flawed and leads to misleading financial statements. It enables the reader to find out that by including the stated disclosures in a company’s financial statement notes; it could fully comply with GAAP and still put a stop to its financial statements being considered misleading. Analysis of Cause and Effect Using the analysis of cause and effect in “Practical Lessons in Applying Accounting Standards”, Pounder brings his readers to understanding the background of his need for publishing the article and feels the impact of his narration to financial accounting minds. Analysis of cause and effect refers to a rhetorical strategy that the author uses to critically investigate the original source and outcome of any study. For “Practical Lessons in Applying Accounting Standards”, Pounder ponders over the inherent differences between US accounting for income tax and financial accounting. This leads him to seek discussion with an online like-minded colleague on the apparent differences. They then discuss the issue and come to conclusive analysis of GAAP as the cause of the differences. Upon identifying the sections of GAAP that make the calculation of income tax different from some common financial accounting statements, the author and colleague dissect the same document for solutions to its limitations. He resolves the conflicts in ASC Topic 740 and ASC Topic 855. He concluded that the guidance in ASC Topic 740 needs to take precedence over the ASC Topic 855 guideline (Pounder, 2009). The outcomes of the study were three valuable lessons for the readers. First and foremost, the author found out that it is possible to achieve fair presentation of any financial statement without violating accounting rules using GAAP. Secondly, he noted that scope declarations are crucial in ascertaining that one applies appropriate accounting standards to his situations and avoids application of improper accounting standards to it. Finally, the author concluded that once accountants identifies guidance that seem irrelevant to their situations, the most reasonable thing to do is to keep seeking additional guidance that may be relevant. Logos: Logical or Rational Appeal In “Practical Lessons in Applying Accounting Standards”, logos is used to reveal the fact that hasty analysis of a document can be detrimental to one’s accounting career, and that GAAP is not inefficient after all. Logos convinces the audience by use of statistics, researched data and reasoning. Pounder displays a great extent of research in his bid to convince himself and the audience that the apparent inefficiency of GAAP is due to insufficient dissection of the guideline. He goes down into insightful analysis of the guideline to realize the oversights he had made in sections 855 and 740 of the document. His arguments are based on researches and analysis of accounting policies in place. For instance, he bases the foundation of his argument on new tax law that was enacted in January 2013. He says that the law was retroactively affected the financial year of 2012 and allowed a company in the case study to claim tax credit on the 2012 tax return for Research and Development costs it incurred in the same year (Pounder, 2009). In addition, the arguments are based on publications such as “The Benefit of Hindsight” and the “Subsequent Events of the Financial Accounting Standards Board” .The facts he highlights from his book and addresses to the audience follows reason and makes sense to any ordinary person. It is therefore important to note that some logic is drawn from the analysis. Ethos: ethical Appeal Ethos plays an important role in “Practical Lessons in Applying Accounting Standards” in terms of credibility. Ethos refers to the image of the author’s perception. In this piece, Pounder uses ethos to give his expert testimony of the events and contexts of financial accounting as discussed. For instance, he states that in his experience, auditors and preparers of financial statements are inclined to invoke a GAAP override only when their understanding of the GAAP is limited. Based on his view, he turned to the guidance he had previously identified to be relevant and expanded his views beyond the measurement and recognition provisions to include disclosure and presentation provisions. Use of ethos enables the researcher to give a flowing report of his findings as statistics and research data may not always be logical. The audience is convinced that what is discussed hold significant truth and is a product of valid and reliable research. Conclusion From this rhetorical analysis, it is evident that proper understanding of the audience and presentation of one’s work is important to the understanding of his literature. Pounder’s “Practical Lessons in Applying Accounting Standards” is a perfect example of rhetorical analysis that was done properly before putting facts and figures on paper. It expertly considers all elements of a good piece and satisfies the needs of the audience. It is critical to note that rhetoric tools of analysis boosts conveyance of a message and effectively attracts the attention of the audience Reference Pounder, B. (2009, February 14). Practical Lessons in Applying Accounting Standards. New York, New York, United States of America. Read More