Accounting Theory and Issues: JB Hi-Fi

Running head: ACCOUNTING THEORY AND ISSUES
JB Hi-Fi
Accounting
Theory and
Issues
9/9/2019

ACCOUNTING THEORY AND ISSUES 1
Table of Contents
Introduction................................................................................................................................2
Background of JB Hi-Fi.........................................................................................................2
Concept of Corporate Social Responsibility..........................................................................2
Corporate Social Responsibility in JB Hi-Fi..........................................................................3
Social statement of “Helping Hands” program..................................................................3
JB Hi-Fi’s Workplace Giving Program – “Helping Hands”..............................................4
Helping Hands – In Australia.............................................................................................4
Change for Change – donation Boxes in JB Hi-Fi Stores..................................................5
Accounting Theories..............................................................................................................7
Agency theory....................................................................................................................7
JB Hi-Fi Disclosure................................................................................................................8
Recommendation........................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

ACCOUNTING THEORY AND ISSUES 2
Introduction
Accounting theory is said to be the set of frameworks and assumptions adopted in the
application of principles of financial reporting. The accounting theory study is comprised of
review of accounting practice’s historical foundations and the way under which the practices
of accounting are altered and included to the supervisory framework that oversees the
financial reporting (Waweru, Prot Ntui and Mangena, 2011). Every theory of accounting is
destined by the theoretical accounting framework. This framework is established by the
Financial Accounting Standards Board (FASB), which is one of the independent entities that
works to found and plan the key objectives of the financial reporting by the enterprise (Miller
and Power, 2013). Further the theory of accounting could be considered as the supports in the
guidance and evaluation of the accounting practices (Coetsee, 2010). The intent of this report
is to discuss about the one of the accounting issues experienced by JB Hi-Fi which is the
well-known retailer of Australia deals in the selling of consumer goods. The report is also
highlighting some of the associated accounting theories that can rationalize the argument and
help in making recommendations for the business to make improvements in the future.
Background of JB Hi-Fi
JB Hi-Fi is the Australian retailer and a publically listed company that is involved in the
selling of consumer goods. The company majorly operates its business in New Zealand and
Australia. Headquarter of the company is established in the Melbourne’s shopping centre. In
1974 the company was introduced in the market by Mr. John Barbuto (IBIS World, 2018).
Concept of Corporate Social Responsibility
CSR is developed as the self-regulating business model that supports a business to be socially
answerable, towards its stakeholders. By adopting the practices of CSR which is also known

ACCOUNTING THEORY AND ISSUES 3
as corporate citizenship, businesses can be careful about the type of impact they leave on
every aspect of the society comprising environmental, social, and economic (Lindgreen and
Swaen, 2010). In order to get involved in the CSR in the standard course, a business has to
operate in the way such that it can improve the society and environment, in place of
contributing in the adverse manner. CSR is a varied concept that can take numerous forms
based on the industry. With the help of CSR program, business can offer major benefits to the
society along with boosting its own brand. This reflects that CSR is not just beneficial for the
society it also offer benefits to the businesses (Hopkins, 2012). The activities of CSR can
helps in making stronger bond between company and workforce, as it increase morale and
help them feel connected with the world. For a business to be socially responsible, the first
requirement is to become responsible towards shareholders and even towards itself. Most of
the businesses that establish CSR programs have developed their operations so that they can
again give back to the society (Kitzmueller and Shimshack, 2012). Therefore, CSR program
is basically a strategy of the big business.
CSR in JB Hi-Fi
JB Hi-Fi is a group that keeps its CSR at priority to not just contribute towards its own
development but also for the development of society. The company has been involved in
different CSR programs that have supported it in contributing in enhancing the society
growth and employees (JB Hi-Fi, 2019). The corporate social responsibility program of JB
Hi-Fi “Helping Hands” is the one that is contributing in this development.
Social statement of “Helping Hands” program
The group understands the implication of their social responsibility towards employees,
customers, and suppliers, etc. Being the Australia’s and New Zealand’s top retailer, the entire
Group is dedicated towards effectively working with its suppliers, customers, and employees