(PDF) Accounting Theory and Current Issues : Assignment

Accounting Theory and
Current Issues

EXECUTIVE SUMMARY
This project summarises as accounting theory is collection of various information about
an organisation. In this project report, two topics are selected which are corporate social
responsibility research in accounting and how accounting and accountants may contribute in
sustainability. In order to provide an understanding about these topics, various reasons of
selecting this topics along with explanation. Impacts of these topics and its findings on its
stakeholders are also discussed in this report.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
Reasons for selecting research articles........................................................................................1
Explanation of purpose and research questions..........................................................................2
Similarities and differences in both the studies...........................................................................3
Implications that will be useful to inform various external reporting stakeholders....................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Accounting theories are the set of different anticipations, models and epistemology that
are used by accountants of an organisation while studying different financial reporting principles.
Accounting within an organisation is very important activity to record all the transactions of a
company in a particular report. Corporate social responsibility can be defined as the standpoint in
which an organisation should aware of its positive or negative impacts on society or its
environment (Corporate social responsibility, 2018). The main purpose of carrying out research
is is to ascertain Accounting in CSR. Two selected research articles for this report are corporate
social responsibility research in accounting and How accounting and accountants may contribute
in sustainability.
This project reports consist the reasons for selecting above mentioned two topics,
explanation of purpose for choosing both the topics, similarities and differences between them
and major implication of research which to inform external stakeholders.
Reasons for selecting research articles
Two topics are selected for this project reports that are corporate social responsibility in
accounting and how accounting and accountants may contribute in sustainability. Corporate
social responsibility refers to the liability of an organisation toward society and the impact of its
business operations on surroundings or environment. It is compulsory for public and private
organisation to contribute a fixed percentage of its annual profits for welfare of society.
Accounting is an activity which is performed by an accountant in which all the transactions are
recorded in accounting books and than profits and losses are calculated for a particular year or
period. Reasons for choosing these two topics are as follows:
Reason for selecting corporate social responsibility research in accounting:
 This topic is selected because it may help to enhance business knowledge such as brand
recognitions, financial performance, growth of an organisation, customer's loyalty toward
particular brand etc.
 It is selected because it may result in better knowledge of importance of corporate social
responsibilities for different organisations.
1

 Reason behind selection of this article is that, it may help to get the information how
companies identify risks and uncertainties with the help of corporate social responsibility
deal with the same.
Reason for selecting How accounting and accountants may contribute in
sustainability:
 This article is selected to understand the importance of accounting and accountant for an
organisation and how it may help to reduce the possibility of errors in accounting reports.
 Reason for selecting this topic is to identify the important roles and duties of accountants
within and organisation and how it is possible for accountant to perform duties and roles
accurately and effectively.
 It is selected to understand the concept of accounting and its roles to contribute in
sustainability and to record financial and non financial information in books of
accounting in systematic manner.
Explanation of purpose and research questions
Purpose for choosing How accounting and accountants may contribute in
sustainability: Purpose of selecting this topic is to understand the basic concept of accounting
and role of an accountant within an organisation. This is chosen to identify that how accountants
manage different activities like financial and non financial and record them properly in different
books of accounting in systematic manner. Another purpose of selecting it is to figure out that
how organisations choose best accounting system and accountant to contribute in sustainability.
Major purpose for selecting this topic is to analyse how proper record of accounting information,
may help to contribute in sustainability, decision making and performance of a company.
Research questions
Q1. Do the organisation contribute a fixed percentage of its net profits toward welfare of society?
Q2. Do Corporate social responsibility help to set a positive image of organisation in market?
Purpose for choosing How accounting and accountants may contribute in
sustainability: Purpose of selecting this topic is to understand the basic concept of accounting
and role of an accountant within an organisation. This is chosen to identify that how accountants
manage different activities like financial and non financial and record them properly in different
books of accounting in systematic manner. Another purpose of selecting it is to figure out that
how organisations choose best accounting system and accountant to contribute in sustainability.
2

Major purpose for selecting this topic is to analyse how proper record of accounting information,
may help to contribute in sustainability, decision making and performance of a company.
Research questions
Q3. Do the accountants of the company follow benchmark measure, to contribute in
sustainability?
Q4. Do accountants of the organisation follow the standards of SASB (Sustainability accounting
standards board)?
Similarities and differences in both the studies
Similarities
Basis CSR in accounting Contribution of accounting and
accountant in sustainability
Financial
performance
There is huge contribution of
different CSR activities to drive the
financial performance of organisation
through building higher brand image.
Accounting is the concept through
which internal and financial
information is attained. Adoption of
this system aid in resolving issues
already persist in organisation related
to quality and performance gap and
results in improvement of profitability.
Growth derived
on long term
basis
Providence of CSR activities not aid
in attainment of growth is short
period of time. The results should be
derived in log run through gaining the
support of public and government.
There are many accounting system
like cost and inventory systems which
help to making internal procedures
more profound in long run. This will
results in development and growth of
organisation in future
Differences
Basis CSR in accounting Contribution of accounting and
accountant in sustainability
Approach CSR is external approach. This will
includes contribution of
organisation towards society by
Accounting is internal approach. This
will includes adopting of different
accounting systems and reports which
3

fulfilling their needs. The aspects
which are adopted in this regard by
organisation includes providence of
fixed of amount of profit every year
or reduction of adverse impact of
organisational functionalities upon
environment.
aid in developing internal department
functions. The systems which are
majorly used within the organisation in
this regard includes cost and inventory
system.
Benefit External benefits are derived by
organisation through adoption
different CSR practices. The
beneficiaries which are derived
through this includes enhancement
of goodwill and attaining the
support of government in
organisational activities.
Through adoption of Accounting
approaches internal benefits are derived
by organisation as this will aid in making
building strength of internal departments
of organisation. This will improves their
working efficiency and decision making
abilities after removal of all
discrepancies which are present in
normal procedures of organisation.
Implications that will be useful to inform various external reporting stakeholders
Two topics which are selected are Corporate social responsibility research in accounting
and how accounting and accountants may contribute to sustainability. These research topics has
few implications which are useful to various stakeholders and they are discussed below:
Accountants in Australian companies:
CSR in accounting
Research findings of CSR topic which are important to convey to accountants in
Australian companies are CSR is a new field of accounting research due to which accountants
should ensure to mirroring the expansion of CSR in their companies. Another implication of this
topic is to while developing financial and managerial reports, accountants should provide
insights about the queries and provide an understanding about CSR related activities.
Accounting and Accountant towards sustainability
4

From the topic of how accounting and accountants may contribute to sustainability,
findings which should be implicated to accountants of Australian companies are that accountants
should ensure standardisation and sustainability accounting and reporting. From the findings it
can be said that accountants should equip core knowledge of environmental engineering and
handle technical accounting problems (Schaltegger and Csutora, 2012).
Accounting regulators:
CSR in accounting
Accounting regulators are the regulatory authorities which are impacted by the research
findings of the selected topics. In the case of CSR topic, implications to accounting regularities
are these authorities should get an expertise in measuring cost behaviour. Another implication
from the findings is to seek information about corporate social responsibilities and activities in
order to make sure that companies are following their duties of social responsibility.
Accounting and Accountant towards sustainability
In the case of sustainability topic, implication to accounting regularities is to investigate
Australian organisation and certify them by “certified sustainability accountant”. Another
implication is to integrate sustainability accounting and management with accounting education
curriculum in training programs given by them (Schwartz, 2017).
Investors
CSR in accounting
These are the another stakeholder which are recognised from the research topics. In the
case of sustainability topic, information which is important for investors are sustainability report.
An accurate and reliable sustainability report can affect the investment decisions of an investors.
Accounting and Accountant towards sustainability
In the case of corporate social responsibility, investors are affected by the information
regarding CSR as they are stakeholders which are influenced by the proper CSR of an
organisation. As CSR affects image of the company (Willard, 2012).
CONCLUSION
From the above project report, it has concluded that accounting theory is the collection of
information which is related with the information of an organisation. In this project report, two
topics are selected with are corporate social responsibility and sustainability. After analysing
various factors and reasons for these topics it can be said that CSR is a procedure which concerns
5

with contribution of company towards society. Sustainability from accounting and accountants
topic concludes that by following sustainable accounting techniques, trust and image of the
organisation can be enhanced.
6

REFERENCES
Books and journals:
Bennett, M. D., Schaltegger, S. and Zvezdov, D., 2013. Exploring corporate practices in
management accounting for sustainability (pp. 1-56). London: ICAEW.
Cheng, B., Ioannou, I. and Serafeim, G., 2014. Corporate social responsibility and access to
finance. Strategic management journal. 35(1). pp.1-23.
McWilliams, A., 2015. Corporate social responsibility. Wiley encyclopedia of management,
pp.1-4.
Roy, S. K., and et. al., 2015. Corporate social responsibility. EduPedia Publications Pvt. Ltd..
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues, concepts
and practice. Routledge.
Schaltegger, S. and Csutora, M., 2012. Carbon accounting for sustainability and management.
Status quo and challenges. Journal of Cleaner Production. 36. pp.1-16.
Schwartz, M. S., 2017. Corporate social responsibility. Routledge.
Willard, B., 2012. The new sustainability advantage: seven business case benefits of a triple
bottom line. New Society Publishers.
Online
Corporate social responsibility. 2018. [Online]. Available through:
<https://www.bigcommerce.com/ecommerce-answers/what-is-corporate-social-
responsibility-csr/>
7