In the first part of the homework, I narrowly defined the term accounting profit, forming a technical discussion on the basic concept of accrual accounting and the literal difference between accounting profit and real profit. Hines (1988) described this as simply “measuring reality” without asking who created reality. Throughout this module, I developed an awareness of the level of sovereignty held by the standard setters who determine the method of calculating accounting profit. Instead of focusing on accrual accounting assumptions, this essay will examine the formulation and implementation of the conceptual framework as a whole. The idea of ​​subjectivity in the adoption of accounting methods has also been extended to the professional judgments of regulators. Additionally, accounting theories will be applied to shape a contextualized assessment. For example, through critical theory, I begin to question the “truth” that was initially given to me: How reliable is the profit number in the financial statements? Two levels of compliance come into play to answer this question, namely compliance between regulators and ethical codes in terms of standardization, and between managers and accounting standards. Central to the following discourse would be the monetary measurement assumption that accounting profit excludes non-monetary elements such as opportunity costs to ensure consistency with the first part of the assignments. Reliability of Accounting Profit – Self-Regulation via Ethical CodesBefore being considered as a measure of actual profit, the reliability of profit figures must be assessed. As highlighted above, regulators are powerful to the extent that profit is "the result of the application of particular accounting rules and conventions...when these rules change, the same set of...... middle of paper ...... investigation into ethical behavior in the accounting profession. Journal of Accounting Research, 9 (2), pp. 287-306. Olusegun Wallace, R. 1996. The development of accounting research in the United Kingdom. In: Cooke, T. and Nobes, C. eds. 1997. The development of accounting in an international context. London: Routledge, pp. 218-254. Parker, L.D. 1955. Practitioners' Perspectives on Personal Conduct. In: Cooke, T. and Nobes, C. eds. 1997. The development of accounting in an international context. London: Routledge, pp. 68-89. Rodgers, P. 2007. International Accounting Standards. Oxford: CIMA.TA, L. 1996. Richard Brown, Chartered Accountant and Christian Gentleman. In: Lee, T. ed. 1996. Shaping the accounting profession: the story of three Scottish pioneers. New York, Garland: p. 153-221. Wagner, J. W. 2001. Defining objectivity in accounting. The accounting review July, pp. 599-605.