Importance of Stakeholder Engagement, Positive Accounting Theory and Legitimacy Theory in Business

Advanced Accounting
Assignment

1
By student name
Professor
University
Date: 25 April 2018.
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Executive Summary
A financial report has been prepared on the importance and the sue of some of the theories
applied in the business context and how is it important to meet the expectation of the investors
and the financial users for the continuity of the business. The report discusses on the Stakeholder
Engagement Theory and how is it important especially for banking institutions. It also shows the
benefits of positive accounting theory for the business with the help of one of the hypothesis
called the political cost assumption. Finally, the report also focuses on the legitimacy theory and
why it is important to keep the users and the investors informed on the social and environmental
contributions of businesses. All these theories have been explained using two research articles
published in the Australian Journal.
1. “A step too far crucifies small businesses” on one of the Australian Banks called National
Australian Bank
2. “CBA in pay out on “toxic” products” on the Commonwealth bank of Australia.
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