Contemporary Accounting Theory

This document discusses the evaluation of corporate crisis and the political process of accounting standard in Contemporary Accounting Theory. It explores the impact of corporate crises on accounting regulation and the improvement of the valuation procedure. The document also highlights the critical evaluation of the political process in setting accounting standards. It provides valuable insights and analysis on the role of accounting regulation in the business market.

Contemporary Accounting Theory
0 | P a g e

Executive Summary
The regulation for the improvement of the evaluation procedure within the field is to enhance
their value as well as their movement within the field and for that the entire regulation procedure
of the company. The airline then the financial securities, as well as the computer industries, are
some of the industry that is facing a huge financial crisis over the times. Throughout history one
can easily found the business crisis that took place. The political pressure in the recent world can
be seen emerging from a different degree that eventually strength as well as feeling across the
entire world for the expansion of the precious activity within the field. The period of the 1970s is
considered to be the inflationary decade in the UK as well as the annualised inflation rate of the
country rated almost 25% during August 1975. It is the fact that during the 1972 numerous
companies has been deducting almost their 100% of the first year tax allowances on the diverse
fixed assets by the time of displaying the usual depreciation within the published account.
1 | P a g e

Table of Contents
Introduction.................................................................................................................................................3
Evaluation of Corporate crisis in every era leads to the improved accounting regulation............................3
Critical evaluation of the political process of accounting standard..............................................................6
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10
2 | P a g e

Introduction
The primary function of the paper is to present an successful view on the evaluation of the
corporate crisis that helps the country to improve its accounting regulation for the betterment of
the firm. The paper also discusses the evaluation of the political process and the pressure within
the accounting regulation of the country. The paper eventually discusses the various accounting
standard and the political factor that deal with the situation and the business procedure within the
market.
Evaluation of Corporate crisis in every era leads to the improved accounting regulation
The corporate crisis or the failure in most of the situation deal helps the business and the society
to improve their regulation and their operational function effectively within the field. The
corporate crisis or the failure is the new factor as it can be seen from the earlier life and this
effectively helps to enhance the accounting process and the regulation in the world. Numerous
organisations all over the world are facing a huge corporate crisis due to their activity and their
accounting process (Zeff, 2002). The airline then the financial securities, as well as the computer
industries, are some of the industry that is facing a huge financial crisis over the times.
Throughout history one can easily found the business crisis that took place. For example, in the
era of 1637, the failure or the disaster was in the Dutch tulip bulbs where the market collapse
under their weight and for that it leads to the financial crisis for the speculators as well as the
backers (Almamy, Aston, & Ngwa, 2016). There is also another example of corporate crisis like
the cranberry crop market crisis in the era of 1959 because Food and drug administrator
eventually sized some part of the crop as it contains the small residue of the weed killer.
It is the fact that each of the crises contains the seed of the success within them and even the root
of the failure. It is highly essential for the people and the management to understand the failure
root and enhance the success seed for the development of better regulation system within the
field. Finding, cultivating as well as harvesting the possible success is considered to be the core
of crisis management (Lins, Servaes, & Tamayo, 2017). The corporate crisis within the world
helps the management to understand their fault and the reason for failure which in turn help them
to enhance their business value and their market within the field. It is one of the most valuable
and suitable procedure for industry with the condition. The financial activity of the company
3 | P a g e

shows that they are growing within the field for dealing with the business progression within the
field.
The corporate crisis helps the firm to expand its market and its operational function effectively
for dealing with the situation (Rodrigues, Tejedo-Romero, & Craig, 2017). The corporate crisis
allows the industry to understand their fault and their drawbacks within the market. It is highly
crucial that the firm needs to analyse their root cause for the failure and for that the entire activity
needs to be developed within the system of proper regulation. The corporate failure case of
Starbucks took place in the year 2018 show that the issue was related to the discrimination
among the white people and the black people. The issue in this situation was developed by the
firm to maintain their activity by providing similar behaviour and favour to the people without
discriminating the people in term of their skin colour.
The regulation for the advance of the valuation procedure within the field is to enhance their
value and their action within the field and for that the entire regulation procedure of the firm. The
entire movement of the field is to provide the suitable and active worth within the field that
would help the firm to understand the proper regulation for the accounting process within the
field (DeHaan, 2017). It is one of the most effective processes for the firm to deal with the
regulation and the valuation process to develop their understanding within the field. The
regulation and the activity associated with the corporate crisis help the form to increase their
value as well as their access process within the field. The entire movement of the compact is to
maintain their value along with the procedure to develop the effective regulation for the
development of the firm to analyse their process and the valuable activity in the field (Burritt, &
Christ, 2017). The regulation formed within the field to widen their worth and their business in
the field of financial activity for the development of the firm. It is one of the most effective
processes for the valuable and activity of the firm in the field. Another example of the corporate
crisis could be vied in the present era where the Southwest faced the tragic incident in the year
2018 when the passenger died after the damaged engine blew out the window of the airplane. It
is the fact that organisation has to deal with the situation by the help of their crisis team and even
it is effectively empowered with the help of digital tools. The organisation uses the video then
the tweets to provide clear information regarding the actual incident that took place within the
plane.
4 | P a g e

The past crisis of the corporate and the financial activity effectively show that the complete
worth of the company is to deal with the working function within the process. During the
process, the entire activity of the company is to contract with the industry development for
delivering the essential and the perfect value within the market (Janssen, Sen, & Bhattacharya,
2015). For the development of the business, it is highly indispensable that they maintain their
industry value within the advertising field for dealing with the circumstances and also for the
development activity in the workplace. The accounting theory is also effectively developed
within the field with the field for dealing with the condition and maintains its business within the
working function (Brandenburg, 2016). The entire movement of the business process is to value
their function and their industry process for the expansion of the operational function within the
field. In the most valuable and effective process, the entire firm is to extend effective regulation
and the industry value within the market. It is highly crucial for the industry value to maintain
their firm and their working function with the proper field and the business process.
The accounting theory in the modern world has developed the value as well as the business
process within the field. In the entire doings of the business world is to increase its business
worth within the field. The global financial crisis is to rupture out the condition of the IAS 39 for
measuring the certain monetary assets that also by using the fair worth to enlarge their business
activity and the progression within the field (Nallareddy, & Ogneva, 2016). The entire process is
to deliver expensive activity within the field for production with the working function with even
for maintaining the worth of the firm. The IASB standard also needs to be developed by the firm
for maintaining their activity effectively within the progression. This is to maintain the
movement of the company and to develop a priceless process for the development of the entire
movement within the field. It can be seen that the value of the organisation is to sustain their
process and their perceptive for dealing with the state of affairs and even to analyse the proper
activity of the firm. The financial statement of the firm shows that the complete activity of the
field is to deal with the industry procedure and have the essential activity to develop the business
(Dillard, & Vinnari, 2017). The activity of the company is to build up the industry process as
well as to maintain its value within the field. The activity of the firm is to deliver the business
value and the working function for the betterment of the situational process within the field. The
entire movement of the company is to expand their value as well as their business process
effectively with the help of the suitable working function. In this process, the entire movement of
5 | P a g e

the company is to extend their worth as well as their business movement for maintaining the
operational function within the market.
Critical evaluation of the political process of accounting standard
The International Accounting standard board within recent years have effectively emerged from
the restructuring of the entire process within the International Accounting Standard Committee
board, and for that, it eventually seeks the establishment of the high quality of the International
Financial Reporting Standard to maintain the accounting system within the field (Bengtsson,
2011). The ways for setting the accounting standard are as follows;
 Identification of topic: the very first stage of preparing the accounting standard with the
help of legal authorities.
 Formation of the pre-agenda research: the research for agenda is conducted that is highly
essential for setting the accounting standard within the business.
 Agenda decision-making: During the research performed by the political parties make the
effective and suitable decision for conducting the agenda.
 Issue the documents for the public feedback: In this the documents is being issued for the
public to provide their feedback and their understanding on the field.
 Host the public hearing: in this process of setting the accounting standard the political
parties formed the public hearing for dealing with the drawbacks and making the standard
much more effective.
 Re-deliberate: In this stage the modification of the accounting standard is being
performed according to the feedback and the information provided by the public.
 Issue of the final standard: this is the final stage where the accounting standard has been
finalised for dealing with the situation and the business process.
These are some of the stages that effectively help the business to form their standard and their
activity within the field. The political pressure in the recent world can be seen emerging from a
different degree that eventually strength as well as feeling across the entire world for the
expansion of the expensive activity within the field.
Activities performed by the business to maintain the accounting standard
6 | P a g e

One of the most effective political factors that have the huge impact over the accounting process
of the firm is the UK accountancy profession unexpected volte-face on the postponed tax
accounting that also in the middle of 1970s (Palea, 2015). It is one of the vital examples of the
political pressure where the enforcement mechanism is eventually lower than the external auditor
that eventually existed within the country. The Accounting Standard Committee eventually
approved the statement for the betterment of the firm along with the maintaining their movement
within the field.
The standard formed by the regulation and the political pressure is to develop their activity in the
field that would effectively develop the firm and their business process within the field. The
standards embrace the comprehensive tax allocation where the all timing difference is eventually
recognised as well as deferred with the method that the US Accounting Principles Board has
eventually adopted within the field for the betterment of the corporation and the society to
enhance their activity (Deegan, 2017). In most of the situation, it can be seen that the big
industries have been started to begin to voice the objection in the strong political view for the
development of the firm.
The period of the 1970s is considered to be the inflationary decade in the UK as well as the
annualised inflation rate of the country rated almost 25% during August 1975. It is the fact that
during the 1972 numerous companies has been deducting almost their 100% of the first year tax
grant on the diverse fixed assets by the time of displaying the usual depreciation within the
published account (van Helden, & Uddin, 2016). The government of the country has been
granting the stock appreciation for the tax process of the activity within the field for the
betterment of the firm and also for the expansion of the valuable activity.
Another political factor that could be viewed within the field for the development of the
operational function is that the Australian Senate votes part on the accounting standard for the
development of the business. The Australian parliament primarily manages the jarring rebuff
regarding the national standard setter for the corporate activity within the field. In the year 2000,
the two opposition political party have their representation on the Australian Senate sponsored
that is the disallowance of the motion that voided the operational treatment for approving the
Australian Accounting Standard Board that deals with the reconstructing the economic entity of
the field (Gimbar, Hansen, & Ozlanski, 2016).
7 | P a g e

The 4-5 votes have eventually approved the standard for the betterment of the country and their
precious movement within the field. It is one of the vital options where the entire field is to
develop their value and their marketplace for the betterment of the firm. The political parties and
their pressure over the accounting standard maintain the movement of the company for dealing
with the state of affairs and also for valuable activity within the business process (Ramanna,
2015). The political pressure created the number of issues that have a huge impact on the
improvement of the business procedure as well as the operational function within the firm.
Lobbying by the particular interest group
The political pressure within the formation of the accounting standard and the development of
the accounting theory effectively help the firm to analyse its business assessment within the
market. The entire movement of the company is to uphold their value as well as their operational
function within the marketplace for the betterment of the corporate level activity within the field.
The federal system of the board provides the view that the entire movement of the company is to
maintain their assessment as well as their business procedure within the market (Brown, &
Dillard, 2015). The political parties develop their value with their views within the marketplace
that eventually help them to analyse the condition plus provide the essential activity within the
market.
The condition is that with the effective political parties the formations of the accounting standard
and the rules and regulation have their vital impact over the field to perform their activity. The
entire movement of the organisation is to increase their value and their commerce procedure
within the market for the betterment of the corporate regulation and understanding process
(Bamber, & McMeeking, 2016). The entire movement of the company and the political pressure
is to deal with the state of affairs plus maintain their value within the field. The entire activity of
the political factor is to maintain their business progression for the expansion of the entire
activity in the development of the corporate field within the firm for enhancing their value in the
general basis activity of the entire value of the business development.
Governmental regulation: The FASB initiatives are effectively developed within the field for
providing effective value within the field that helps to develop understanding the most suitable
development for selling with the situation. The political pressure and their activity in the
8 | P a g e

financial accounting system help the firm to maintain their value and their industry effectively
within the market (Haynes, 2017). It allows the entire activity of the business to analyse the
situation as well as provide the most suitable operational function within the market. The entire
movement of the field is to expand their value and their understanding of the financial movement
of the business to enlarge their value as well as their understanding within the market.
The entire activity of the financial process is to deal with the situation as well as provide a
valuable process within the field (Bebbington, Russell, & Thomson, 2017). For the expansion of
the firm and the betterment of the commerce process, the use of political activity becomes highly
necessary for the company. In most of the situation, this needs to be developed for maintaining
their value within the market and dealing with the situation where the accounting standard needs
most of the development and the valuable activity in the field.
Conclusion
The paper eventually concludes that the accounting standard and the activity of the firm is to deal
with the situation and provide the most effective view within the market. The accounting
regulation gets improved with time and the failure faced by the corporate firm during their
business process and their value within the market. In most of the situation, it can be viewed that
the activity of the business process is to deal with the political factor for providing their value
and their most effective understanding in term of the accounting and the financial concept within
the market.
9 | P a g e

References
Almamy, J., Aston, J., & Ngwa, L. N. (2016). An evaluation of Altman's Z-score using cash flow
ratio to predict corporate failure amid the recent financial crisis: Evidence from the UK. Journal
of Corporate Finance, 36, 278-285.
Bamber, M., & McMeeking, K. (2016). An examination of international accounting standard-
setting due process and the implications for legitimacy. The British Accounting Review, 48(1),
59-73.
Bebbington, J., Russell, S., & Thomson, I. (2017). Accounting and sustainable development:
Reflections and propositions. Critical Perspectives on Accounting, 48, 21-34.
Bengtsson, E. (2011). Depoliticalization of accounting standard setting—The IASB, the EU, and
the global financial crisis. Critical Perspectives on Accounting, 22(6), 567-580.
Brandenburg, M. (2016). Supply chain efficiency, value creation, and the economic crisis–An
empirical assessment of the European automotive industry 2002–2010. International Journal of
Production Economics, 171, 321-335.
Brown, J., & Dillard, J. (2015). Opening accounting to critical scrutiny: towards dialogic
accounting for policy analysis and democracy. Journal of Comparative Policy Analysis:
Research and Practice, 17(3), 247-268.
Burritt, R. L., & Christ, K. L. (2017). The need for monetary information within corporate water
accounting. Journal of environmental management, 201, 72-81.
Deegan, C. (2017). Twenty-five years of social and environmental accounting research within
Critical Perspectives of Accounting: Hits, misses and ways forward. Critical Perspectives on
Accounting, 43, 65-87.
deHaan, E. (2017). The financial crisis and corporate credit ratings. The Accounting
Review, 92(4), 161-189.
Dillard, J., & Vinnari, E. (2017). A case study of critique: Critical perspectives on critical
accounting. Critical Perspectives on Accounting, 43, 88-109.
10 | P a g e

Gimbar, C., Hansen, B., & Ozlanski, M. E. (2016). The effects of critical audit matter paragraphs
and standard accounting precision on auditor liability. The Accounting Review, 91(6), 1629-
1646.
Haynes, K. (2017). Accounting as gendering and gendered: A review of 25 years of critical
accounting research on gender. Critical Perspectives on Accounting, 43, 110-124.
Janssen, C., Sen, S., & Bhattacharya, C. B. (2015). Corporate crises in the age of corporate social
responsibility. Business Horizons, 58(2), 183-192.
Lins, K. V., Servaes, H., & Tamayo, A. (2017). Social capital, trust, and firm performance: The
value of corporate social responsibility during the financial crisis. The Journal of Finance, 72(4),
1785-1824.
Nallareddy, S., & Ogneva, M. (2016). Predicting restatements in macroeconomic indicators
using accounting information. The Accounting Review, 92(2), 151-182.
Palea, V. (2015). The political economy of fair value reporting and the governance of the
standards-setting process: Critical issues and pitfalls from a continental European Union
perspective. Critical Perspectives on Accounting, 29, 1-15.
Ramanna, K. (2015). Political standards: Corporate interest, ideology, and leadership in the
shaping of accounting rules for the market economy. University of Chicago Press.
Rodrigues, L. L., Tejedo-Romero, F., & Craig, R. (2017). Corporate governance and intellectual
capital reporting in a period of the financial crisis: Evidence from Portugal. International Journal
of disclosure and governance, 14(1), 1-29.
van Helden, J., & Uddin, S. (2016). Public sector management accounting in emerging
economies: A literature review. Critical Perspectives on Accounting, 41, 34-62.
Zeff, S. A. (2002). “Political” lobbying on proposed standards: A challenge to the
IASB. Accounting Horizons, 16(1), 43-54.
11 | P a g e