Accounting Theory and Practice Essay - 2225 Words

| | 1. Introduction Recent years have saw that listed firms, especially the large organisations, voluntarily disclose their Social and Environmental issues in their annual reports. As a result, a question was come up with by researchers: why managers would choose to undertake the voluntary activities? Although there is no consensus being reached about what perspective theories should be used to explain the Social and Environmental Accounting, and moreover critique voices are from the works of Marx or by the deep-green or feminist literatures (Deegan, 2002), to some extent, systems-oriented theory and Positive Accounting Theory can list some hints. This†¦show more content†¦Ã¢â‚¬Å"The reputation risk management perspective on voluntary social and environmental disclosures in annual reports assumes that threats to corporate legitimacy can result in damage to the value of a company’s reputation, and such risks to reputation need to be minimized through active management.† (Deegan Unerman, 2006) As said by Jonathan Symonds, the Chief Financial Officer of AstraZeneca’s Risk Advisory Group, Failure to deliver our core value could seriously impact out reputation. While the core value is something like social responsibility, environmental policy, and so on, it is those that company should communicate with the public to protect their reputation as legitimate. For example, after the Brent Spar oil rig dumping, Royal Dutch/Shell voluntarily prepared reports about its people and profits in order to repair its image for its failure to deal with the execution by the Nigerian government of an anti-Shell activist (Livesey Kearins, 2002). 3. Stakeholder theory As both legitimacy theory and stakeholder theory belong to â€Å"political economy theory†, they have some overlaps (Gray, Kouhy, and Lavers, 1995). However, compared with legitimacy theory, which mainly discusses the social expectation, stakeholder theory presents a closer view with particular groups in society. That is, legitimacy theory concern about theShow MoreRelatedAccounting Theory and Practice2293 Words   |  10 Pages UNIVERSITI TENAGA NASIONAL COLLEGE OF BUSINESS MANAGEMENT AND ACCOUNTING DEPARTMENT OF ACCOUNTING SUBJECT: ACCOUNTING THEORY AND PRACTICE PREPARE FOR: DR.NORHAYATI MAT HUSIN PREPARE BY: NUR FADZILAH BT NORIZAN (AC086628) NUR IZYAN BT MOHD ISHAK (AC086934) NURUL AQILAH BT ZAMRI (AC085167) THILAGA SEGARAN (AC086628) BACHELOR IN ACCOUNTING (HONS) CASE 1: WASTE MANAGEMENT a) Define the matching principle and explainRead MoreIntermediate Accounting Theory and Practice3407 Words   |  14 PagesX 120C Intermediate Accounting Theory Practice Winter 2013 Quiz 2 Chapter 20 Chapter 21 True-False Conceptual – 40 questions Multiple Choice Conceptual – 40 questions STUDENT NAME:__RUPALI KAYPEE_______________________________ TRUE-FALSE—Conceptual Chapter 20 1. A pension plan is contributory when the employer makes payments to a funding agency. F 2. Qualified pension plans permit deductibilityRead MoreAccounting Theory and Practice Reflection Essay1142 Words   |  5 Pagesview the knowledge we learnt from accounting theory and practice, the main thing I can conclude that is the tendency of accounting will shift away from technical way to people’s behaviour way. By understanding what should do, we should ask why and how we could improve and change it into a better way. This essay aims to explain how the theoretical material that we learn in lectures can be developed under a real practical manner. When talking about accounting, the first thing we should know isRead MoreAccounting Theory And Practice Of Capital Expenditure960 Words   |  4 PagesACCOUNTING THEORY AND PRACTICE By Sanam Maknojia CASE 9-6 a) Revenue expenditure are for costs incurred that is relative to the current accounting period. Capital expenditure are cost incurred for fixed assets and is expected to benefit either in all future accounting periods or in a limited number of accounting periods. The major difference between revenue expenditure and capital expenditure is related to timing. It involves the recognition of expense and, therefore, determining the earning. CapitalRead MoreReflective Essay on Accounting Theory and Practice.3359 Words   |  14 PagesLearning Log Week -2 Lecture: In this lecture I had the understanding, why accounting bodies are so heavily regulated by the government. After the corporate collapse, accounting body lost the trust of public. Our work was not transparent and therefore, was no longer reliable. Regulator body such as ASIC, AASB, FRC and ASX are formed after the corporate collapse. ASIC is the corporate ‘watch dog’ who monitors FRC, AASB and office of AASB. Why we need regulation? Because it is human nature toRead More7101AFE Financial Accounting Theory And Practice Essay970 Words   |  4 Pagesï » ¿7101AFE Financial Accounting Theory and Practice Tutorial Questions for Tutorials 1- 6: Semester 1 2015 TUTORIAL 1 - Semester 1 2015 Deegan Topic 1: Introduction to financial accounting theory QUESTION 1 – Question 1.2: If you developed a theory to explain how a person’s cultural background influences how they prepare financial statements, would you have developed a positive theory or a normative theory? The first of all, it is important to understand the mean by a ‘theory’. According to ContemporaryRead MorePositive vs Normative Accounting Theory Essay1032 Words   |  5 Pageswith planning) TOPIC: Discuss positive accounting theory and contrast it with normative accounting theory. Provide examples where appropriate.       The purpose of this essay is to provide an overview of positive accounting theory (PAT) and highlight how this theory differs to normative accounting theory. Definitions and assumptions of both theories will be considered and examples of the theories will be provided. In addition specific theories related to PAT namely agency and the efficientRead More3101AFE Seminar Questions from Seminars 1 6 Sem 1 20151558 Words   |  7 Pagesï » ¿3101AFE Accounting Theory and Practice Seminar Questions for Seminars 1- 6: Semester 1 2015 SEMINAR 1 - Semester 1 2015 Deegan Topic 1: Introduction to financial accounting theory QUESTION 1 – Question 1.2: If you developed a theory to explain how a person’s cultural background influences how they prepare financial statements, would you have developed a positive theory or a normative theory? QUESTION 2 - Question 1.3: What is a conceptual framework, and would it be considered to be a positiveRead MoreEssay on Annotated Bibliography1285 Words   |  6 Pages1997, ‘Accounting and the Construction of the Governable Person’, Accounting, Organizations and Society, vol.12, n.03, pp235-265. Main Argument In this article, Miller et al. concern about the understanding of the historical foundation of accounting practice by investigating how theories of costing and budgeting were constructed in the first thirty years of the 20th century. In addition, the authors suggest several radical factors of theoretical understanding of accounting in relationRead MoreSample Resume : My Cooperative Education Placement Essay1562 Words   |  7 Pages I assisted in other accounting tasks in the company’s head office as well as other stores. In this reflective overview, I will evaluate my experience at Whitcoulls by discussing my progress and performance in my role, major knowledge and skills against my expectations, and reflect on things that went well, challenges encountered and my future plans. Progress and Performance in my Role My placement at Whitcoulls has provided me with an opportunity to apply the theories and concepts that I have