Contemporary Accounting Theory

Running Head: CONTEMPORARY ACCOUNTING THEORY
CONTEMPORARY ACCOUNTING THEORY
Name of the Student
Name of the University
Author Note

1CONTEMPORARY ACCOUNTING THEORY
Executive Summary
The aim of this assignment is do the analysis on the contemporary accounting theory.
Under this analysis, the discussion will be based on the analysis of the corporate failure in
every era that has led to the improved standards/regulations of the accounting. In addition,
discussion will also be based on the evaluation with the appropriate example about the
complexity of the political process in the globalized context of the accounting setting
standard. Hence, with the analysis, it has been find that the increased corporate failure due to
several factors have resulted in the requirement of standards and regulations of the
accounting. However, the setting of standard faces with the complex political intervention
which should be minimized for the smooth functioning of regulators and corporates.

2CONTEMPORARY ACCOUNTING THEORY
Table of Contents
Introduction................................................................................................................................3
Corporate Failure that leads to Improving of Accounting Regulations.................................3
Accounting Standard Setting is a Complex Political Process................................................7
Conclusion................................................................................................................................10
Reference..................................................................................................................................11

3CONTEMPORARY ACCOUNTING THEORY
Introduction
The contemporaries in the recent global context is making sense of the practices that
is doubtful and suspicious by constructing the narrative that is framing the scandals in the
corporate, this has led for the regulator to change the regulations or do the amendments in
accounting. The issue of the corporate failures in the corporate is raising day-by-day, because
of it, there is the necessity for adopting of the accounting standards that is modified as the
need for the current situation. Hence, the objective of this assignment is to do the analysis of
how the crisis and failures in every period has urged for improvement in the regulations and
standard in accounting for the financial reporting in every subsequent period. Moreover, this
assignment will also discuss the arguments that the introduction of the accounting standard
and regulations is going through the complexity of the political process and lobbying in the
global context (Barth, Beaver & Landsman, 2001).
Corporate Failure that leads to Improving of Accounting Regulations
Financial crisis is defined as the experience of panic from the perspective of financial
as well as the consequences of the panic or the financial prices boom. The financial crisis has
led to the failure of financial market for performing their functions in the effective manner.
The occurrences of the severe shrinkages are in the economic activities volume. In addition,
with the number of common characteristics of the financial crisis. The concept of the
financial crisis is classified as currency crisis, banking crisis, foreign debt crisis and
systematic financial crisis (Grenier, Pomeroy & Stern, 2015).
According to Elio Lannuzzi, the financial market is thoughts as complex adaptive
system that precipitates in chaos and disorder because of seemingly mild event that activates
the latent forces and lead to the unpredictable and emerging consequences. The international
partners orientations is the step towards the new system of international finance, where the