Accounting Theory and Issues - Boral Limited

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ACCOUTING THEORY & ISSUES

Accounting theory
Executive Summary
The report sheds light on the accounting theory and issues that is seen in the ordinary course of
business. This has been considering the organization Boral Limited. The discussion pertains to
the matters that deal with the business issues. It considers various aspects such as social issues,
environmental issues, taxation issue, and employment issue. Over the past 20 years there has
been significant increment in the accounting theories and application thereby giving a strong
impetus to the concerns. Various aspects need special treatment and hence, such matters have
been taken into consideration. Irrespective of the size and complexity of the Boral Limited the
impact of accounting theories cannot be neglected. Therefore, the report is presented in a manner
that gives adequate importance to various factors mentioned above.
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Accounting theory
Contents
Introduction.................................................................................................................................................3
Social issues.................................................................................................................................................4
Environmental Issues...................................................................................................................................4
Ethical issues in accounting.........................................................................................................................5
Taxation.......................................................................................................................................................7
Wages..........................................................................................................................................................7
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10
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Accounting theory
Introduction
Accounting theory can be explained as assumptions, guidelines and methods utilised in the
study, as well as financial reporting principles application. The concept of accounting theory is
infused with the review historical foundation of accounting practices and the manner in which
the methods are varied and applied to the framework of regulation that guides financial
statements and reporting (Brigham & Daves, 2012). Herein, Boral Limited, a multinational
manufacturing company has been selected that supplies building and construction materials.
While procedures of accounting are formulaic, accounting theory is more qualitative because that
can be defined as the road map to effective accounting, as well as financial reporting. The main
view of accounting theory is utility that in the world of company herein Boral Limited means
corporate financial statements should reflect data that can be utilized to make decision that are
informed. This projects that accounting theory is flexible and enables to produce financial
information that is useful when the legal scene varies.
Aim – The primary objective of accounting is to maintain a complete, as well as systematic
record of every transaction and evaluate the business financial position. Every individual or the
process of business is needed to know about the financial transactions. Hence, aim of accounting
theory is to develop the critical objectives of financial reporting.
Background - Accounting theory needs that every accounting, as well as financial professional
functions under four significant assumptions. The initial premise defines that the business is
different from the owners. The second strikes the notion that the company will operate and will
not be insolvent. Thirdly, there is an assumption that all financial statements are done with dollar
amount and does not depend on other unit production (Brigham & Ehrhardt, 2011). Finally,
Boral Limited prepare the financial report on an annual basis.
Scope – Accounting rules, as well as principles projects to enhance the utility of the financial
documents through the creation of a frequent basis of understanding that is prevalent among
accountants and end users. Without the presence of such rules and principles, users would not be
able to understand, as well as interpret the documents correctly as the meanings will be left to the
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