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Accounting Theory and Contemporary Issues - Assignment

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Added on  2020-05-16

Accounting Theory and Contemporary Issues - Assignment

   Added on 2020-05-16

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Running head: ACCOUNTING THEORY AND CONTEMPORARY ISSUESAccounting Theory and Contemporary IssuesName of the Student:Name of the University:Author Note
Accounting Theory and Contemporary Issues - Assignment_1
1ACCOUNTING THEORY AND CONTEMPORARY ISSUESTable of ContentsIntroduction................................................................................................................................2Journal review – Behavioral Agency theory..............................................................................2Positive Agency Theory.........................................................................................................2Behavioral Agency Theory....................................................................................................3Conclusion..................................................................................................................................3References..................................................................................................................................5
Accounting Theory and Contemporary Issues - Assignment_2
2ACCOUNTING THEORY AND CONTEMPORARY ISSUESIntroductionThe different accounting theories efficiently lay down the set of methodologies andassumptions that are utilized for the preparation of a proper financial report. There arevarious accounting theories that have efficiently guided the preparation of the financialreports. These accounting theories have been modified over time in order to suit the currentrequirements of the corporate entities and other stakeholders of business. The journal that has been chosen in this particular study is, “Behavioral AgencyTheory: New Foundations for Theorizing about Executive Compensation” by AlexanderPepper and Julie Gore.Journal review – Behavioral Agency theoryThe Agency theory is an important economic theory that is utilized by the firms as therequired principles for preparing the financial reports. The agency theory that has beenproposed by this paper promotes the new concept in regards to this particular theory that is,behavioral agency theory.The behavioral agency theory pivots around the factors like the performance of theagent and motivation of the employees in regards to the work. This theory further states thatthe demands of the individuals holding the shares of an organization and the respective agentscan only be aligned when the management of the organization has provided enoughmotivation to its employees by making the optimum utilization of the available opportunities.The behavioral agency theory has been established upon those four foundations that havebeen identified as the crucial factors that affect the stakeholder behavior (Bosse & Phillips,2016). These four foundations are as follows:Aversion of loss and dependence on referenceTemporal discountingFairness and inequity aversionThe particular journal that has been chosen, also leads to an introduction of the goal-setting theory in regards to the agency model based on the grounds of a practical contractbetween the agent and the principal (Cui, 2017).
Accounting Theory and Contemporary Issues - Assignment_3

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