Contemporary Issues in Accounting

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary Issues in Accounting
Name of the Student
Name of the University
Author’s note

CONTEMPORARY ISSUES IN ACCOUNTING1
Abstract
Contemporary issues in accounting can arise due to contemporary accounting practices which
relates the different forms of accounting activities with the economic environment. One of
these activities could be reporting of financial statements such as balance sheet and cash flow
statement. One of the issues that is prominent in recent days is being unethical in following of
the rules and regulations laid down by the regulatory authorities regarding accounting system.
In this context, corporate governance can be brought into light which provides the regulations
to be followed by the organisations regarding accounting practices. The paper structures in a
way that starts with the introduction of the issue and its importance. It further moves over to
the theoretical and practical motivation of the concept that briefs about its application in
theories as well in practical phenomena. The literature review provides ideas and concepts of
different authors in relation to corporate governance. The last section states a hypothetical
statement about the research and further the methodology of the research is described in
short.

CONTEMPORARY ISSUES IN ACCOUNTING2
Table of Contents
Introduction................................................................................................................................2
Practical Motivation...................................................................................................................2
Theoretical Motivation...............................................................................................................3
Literature Review.......................................................................................................................3
Hypothesis..................................................................................................................................6
Research Method........................................................................................................................7
References..................................................................................................................................8
Appendix..................................................................................................................................10
Table – Annotated Bibliography for Selected Articles............................................................10

CONTEMPORARY ISSUES IN ACCOUNTING3
Introduction
Contemporary accounting practices are related to the understanding of accounting
activities that are required enormously for the development of a business in today’s complex
environment. In the contemporary accounting model, theories are analysed for linking
accounting with the economic environment. In this context, it becomes very important to
outline the issues that arise due to contemporary accounting. The types of issues that occur in
presence of contemporary accounting could be many. The research would be conducted
keeping in focus one of the major contemporary issues, that is corporate governance.
Corporate governance ensures the suitability and applicability of the accounting system in
relation to regulations set by the regulatory authorities. Issues come up for not abiding by the
rules of accounting. Therefore, this topic becomes a very significant topic of research.
Practical Motivation
Corporate governance plays a vital role in the formulation of accounting practices of
an organisation (Tricker and Tricker 2015). Due to failure in corporate governance there is a
disruption in the functioning of accounts and the figures highlighted in the annual report
might show discrepancies. It has been realised by the different accountants that corporate
governance is required for providing a direction to the companies on the basis of accounting
activities rather than controlling them. Importance of corporate governance was completely
made clear when the issues arose due to implementation of a weak corporate governance
(Krechovská and Procházková 2014). There was a series of meltdowns along with fraudulent
activities and other catastrophes which have led to the destruction of the wealth of the
shareholders, loss of jobs of different employees, criminal investigation of executives as well
as a lot of bankruptcy filings (Rahim and Alam 2014). All these problems pave way for the
improvement and reformation of corporate governance at different structural levels such as
business, national as well as international levels.