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Assignment On Contemporary Accounting Issue

Added on - 01 Mar 2020

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Running head: CONTEMPORARY ACCOUNTING ISSUEContemporary Accounting IssueUniversity NameStudent Name
2CONTEMPORARY ACCOUNTING ISSUETable of ContentsIntroduction......................................................................................................................................2Practical Motivation.........................................................................................................................3Theoretical Motivation....................................................................................................................4Literature Review............................................................................................................................5Hypotheses.......................................................................................................................................7References........................................................................................................................................8
3CONTEMPORARY ACCOUNTING ISSUEIntroductionAgency theory attempts to explain the nature of association between two different parties thatnecessarily include a principal and an agent in which the principal essentially delegates tasks tothe agent who performs that work under a specific agreement. This current segment can help inunderstanding and identifying different issues that might be associated to the principal and agentrelationship owing to conflicting objectives and difficulties for the principal to substantiate whatthe agent is actually doing and to whether the agent has behaved appropriately. Thereafter, thecurrent study explains the reason why the identified issue is important to different parties let’ssay, accountants, managers, regulators as well as general public. Moving further, this study alsopresents an overview of factors pertinent to the study and shows the way in which this researchcan contribute to the existing theory. In addition to this, this paper also critically analyses theprior academic literature that can help in understanding the identified issue, relationship betweentwo different variables along with strengths and limitations of the research.Practical MotivationThe current study identifies the problem of climatic change in the business environment.Essentially, climatic change reflects a clear picture of the risks associated to the natural resourcesthat again carry potential economic costs (Agogliaet al.2015). The limited characteristics ofresources essentially physical, financial, human as well as natural resources calls for the need ofcareful decisions as regards trade off and potential value of investments in the future in climatechange adjustment. In essence, organizations are the principal source of carbon emissions andthis in turn brings about considerable risks for corporations and affects the value of investment ofshareholders of the firm (Beattie 2014). Therefore, the management of firms carries out cost-
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