Journal of Communication Management

Running Head: ACCOUNTING THEORY
ACCOUNTING THEORY
Name of the Student
Name of the University
Author Note

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ACCOUNTING THEORY
Executive Summary
The primary purpose of this report id to understand the issues related to business
ethics and culture in the world of cricket and banks. The study is supported by understanding
the various accounting theories and the case of this issue in Commonwealth Bank. The most
important reason found behind this issue is unethical code of conduct in the business
practices and irresponsible towards the stakeholder's interest.

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ACCOUNTING THEORY
Table of Contents
Introduction................................................................................................................................4
Discussions.................................................................................................................................4
Standard Setting.....................................................................................................................4
Positive Accounting theory....................................................................................................4
Business Ethics.......................................................................................................................5
The situation of Commonwealth Bank..................................................................................6
Commonwealth Bank.........................................................................................................6
Relation with other Institutions..........................................................................................6
Business Culture of Commonwealth Bank........................................................................7
Ethical Dilemmas of Commonwealth Bank.......................................................................8
Journal Article 1:....................................................................................................................9
Journal Article 2:....................................................................................................................9
Journal Article 3:..................................................................................................................10
Journal Article 4:..................................................................................................................10
Theories explaining the business manager motivations.......................................................11
Recommendations....................................................................................................................12
Conclusion................................................................................................................................12
References................................................................................................................................13

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ACCOUNTING THEORY
Introduction
An accounting theory is a concept that uses various method and frameworks to study
the financial reporting principles of a business. The first part of this paper has discussed on
the various accounting theories that affect the culture of a business. The next part has
discussed on the ethical and cultural dilemma of Commonwealth bank. The last section of
this paper has addressed the journals related to these issues. The main objective of this paper
is to understand the various issues related to ethics and culture of cricket and banks.
Discussions
Standard Setting
Importance- Standard Setting is a tool, which is very much important to provide a
mutual understanding among the people. This plays an important role in facilitating business
interaction.
Positive Accounting theory
This accounting theory deals with, predicting the accounting policies adopted by a
firm and its responsibility towards the new accounting standards.
1. Legitimacy theory- This helps to understand the behaviour of an organisation with
respect to its policies towards social responsibility.
2. Stakeholder theory- Stakeholders theory includes various constituencies that could
affect a business entity. Such constituencies include employees, suppliers, creditors
and communities.
Target Audience
Catherine Livingstone is the Chief Executive Officer of Commonwealth bank. Earlier,
she was the non-executive director in the year 2016 and 2017, was appointed as the chairman