Accounting Theory

Accounting Theory and Contemporary Issues

Rubrics:
Insightful and thorough analysis of all the problems/questions.
Ideas are clearly presented, interesting and show understandings of content and a new take on the subject. Focussed and demonstrates depth and accuracy of understanding.
Excellent ability to summarise and interpret multi-sourced data, to appraise evidence, evaluate arguments and to formulate and express very sound conclusions.
Makes appropriate, insightful and powerful connections between the issue/problem and the theory.
Evidence of broad, systematic and creative research. Demonstrates skilful use of high quality, credible, relevant sources. Selection of sources goes beyond the mainstream literature. An excellent summary of relevant data. Wide range of sources accurately reference (Using Harvard referencing).
Outstanding ability to construct a sound and consistent argument. Concise writing style totally lacking in verbosity of any form.
Well-constructed assignment: appropriate, clear, and smooth transitions; arrangement of organisational elements seems particularly apt. Uses sophisticated sentences effectively; usually chooses words aptly; observes professional conventions of written English and report format; free of spelling, grammatical, punctuation and typing errors.

Approx. 314 words per 5 marks

Question 1 (Marks =15)
Let us assume that the government has become concerned that existing disclosure regulation tends to fixate on the financial performance of organisation but fails to address other aspects of corporate performance, including failure to provide information about corporate social and environmental impacts as well as about various initiatives and investments an organisation has undertaken to improve its social and environmental performance. As such, the government has decided to introduce legislation that will require business corporations to provide information about the social and environmental impacts of their operations, as well as the social and environmental initiatives undertaken by the corporations.
Required:
You are required to do the following:
(a) Explain from a ’public interest theory perspective’ the rationale for the government introducing the legislation and how the government will assess whether any proposed legislation should actually be introduced. (marks = 5)
(b)Predict from a ‘capture theory of perspective ‘the type of constituents that will benefit in the long run from any social and environmental disclosure legislation. (Marks =5)
(c) Predict from an ‘economic interest group perspective’ whether any potential legislation to be introduced will lead to an increase in the accountability of corporations in relation to their social and environmental performance despite any implications that this increased corporate accountability might have for the financial success of large but heavily polluting organisations. (Marks =5)