In the first part of the homework, I narrowly defined the term accounting profit, forming a technical discussion on the basic concept of accrual and the literal difference between accounting profit and real profit. This was described by Hines (1988) simply as a "measurement of reality" without questioning who created the reality. Throughout this module, I developed an awareness of the level of sovereignty held by the standard-setting bodies that determine how accounting profit is calculated. Instead of focusing on competency 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 policies has also been extended to the professional judgments of regulators. Additionally, accounting theories will be applied to model a contextualized valuation. For example, through critical theory I begin to question the “truth” initially imparted to me: How reliable is the profit figure on the financial statement? To answer this question two levels of compliance are involved, namely compliance between regulators and codes of ethics in setting standards and between managers and accounting standards. Central to the discussion that follows would be the money measurement hypothesis in which accounting profit precludes non-monetary elements such as opportunity costs to ensure consistency with the first part of the allocations. Reliability of accounting profit – Self-regulation through codes of ethics Before being considered a measure of True Profit, the reliability of the profit data will be assessed. As pointed out above, regulators are powerful such that profit is “the result of the application of particular accounting rules and conventions… when these rules change, the same set of… half of the paper… investigation of ethical behavior in the accounting profession. Journal of Accounting Research, 287-306. Olusegun, C. eds . 1997. The development of accounting in an international context. London: Routledge, pp. 218-254. Practitioner's perspectives on personal conduct development of accounting in an international context. London: Routledge, pp. 68-89. Rodgers, P. 2007. International accounting principles. Lee , T. eds. 1996. Shaping the Accounting Profession: The Story of Three Scottish Pioneers New York, Garland: pp. 153-221.Wagner, J.W. 2001. Defining objectivity in accounting. The July audit, pp. 599-605.