Accounting Theory and Issues .

Running head: ACCOUNTING THEORY AND ISSUES
Accounting Theory and Issues
Name of the Student
Name of the University
Author’s Note

1ACCOUNTING THEORY AND ISSUES
Executive Summary:
The current report is based on understanding the accounting issues that is revolving in Sun Corp.
The report would also place emphasis on the application of the positive accounting theory and
normative accounting theory for Sun Corp Ltd. In the later part of the report, relevant issues
revolving at Sun Corp would be addressed and reference would also be made to the annually
published report. The issues faced by the company would be evaluated in the perspective of
Political, Environmental, Technological, Social and Legal perspective. The report would
consider the qualitative enhancing characteristics of conceptual framework to determine whether
the company is compliance with the regulatory conceptual framework issued by the AASB.

2ACCOUNTING THEORY AND ISSUES
Table of Contents
Introduction..........................................................................................................................3
Positive Accounting Theory:...............................................................................................3
Normative Accounting Theory:...........................................................................................4
About the Company:............................................................................................................4
Issues in the Company:........................................................................................................5
Through Annual Report:..................................................................................................5
PESTEL Analysis:...........................................................................................................6
Conceptual Framework........................................................................................................8
Characteristics..................................................................................................................8
Enhancing........................................................................................................................9
Comparability................................................................................................................10
Timeliness......................................................................................................................11
Conclusion.........................................................................................................................11
Reference List....................................................................................................................13

3ACCOUNTING THEORY AND ISSUES
Introduction
The language of business finance and numerical figures is considered as accounting. The
initiation of the accounting was mainly considered in Middle East however flourished in the
Europe. The conceptualization of the subject has taken into consideration several numbers of
factors which are seen to be based on issues of recording expenditures and trading goods. The
discussions of the study will focus on the evaluation of the Positive Theory and Normative
Theory and will relate the same with Suncorp Group Limited. Some of the other discussions of
the study will include present issues in company through annual Report and Issues in company
through PESTEL. The study on the Conceptual Framework will include Characteristics,
Enhancing, Comparability, timeliness (Sampaio & González, 2017).
Positive Accounting Theory:
Positive accounting theory can be defined as typically used theory in the collection of
data and bookkeeping that takes the objective approach. The positive accounting theory uses the
company’s physical transaction history that analyses and discerns the consequences of the
expenses (Deegan, 2013). The positive accounting theory considers the actual real-world
transactions and assesses how the companies are accounting those transactions (Mattessich et al.,
2014). The theory pursues to understand the financial outcome of the accounting decisions.
The positive accounting theory in case of Sun Corp states that the political cost is related
to the adoption of the accounting policies with the objective of increasing the accounting profits.
Sun Corp often delays in applying the necessary changes in the accounting policies so that it can
avoid the political cost.