To Investigate Accounting Theories Role in Hospitality Stakeholders

This research project investigates the role of system-based accounting theories in meeting the needs of stakeholders within the Australian hospitality sector. The report begins with an overview of accounting terms and the importance of research, followed by a literature review on stakeholder engagement and accounting theories, including legitimacy theory. The methodology outlines the research design, approach, and data collection methods, including sampling and analysis techniques. Findings and ethical considerations are discussed, leading to conclusions and recommendations. The study utilizes primary and secondary sources, such as questionnaires and journals, to analyze the impact of accounting theories on financial reporting and decision-making in the hospitality industry. The report emphasizes the significance of stakeholder engagement and the benefits of system-based accounting for achieving organizational goals and improving financial performance. The report also highlights the role of stakeholder theory in understanding business ethics and organizational behavior. The research aims to provide insights into the practical application of accounting theories and their impact on the hospitality industry.

RESEARCH PROJECT

Table of Contents
Requirement 1: Accounting terms..........................................................................................1
Background ............................................................................................................................1
Importance of research...........................................................................................................2
Research questions.................................................................................................................2
Major question........................................................................................................................2
Minor question........................................................................................................................2
CHAPTER 2: LITERATURE REVIEW.........................................................................................4
Requirement 2: Concept of Stakeholder Engagement............................................................4
Requirement 3: Accounting theories......................................................................................6
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................8
Research Investigation............................................................................................................8
Research design......................................................................................................................8
Research approach..................................................................................................................9
Research philosophy...............................................................................................................9
Requirement 4: Data Collection.............................................................................................9
Sampling...............................................................................................................................11
Data Analysis........................................................................................................................11
CHAPTER 4: DATA ANALYSIS AND FINDINGS...................................................................13
Ethical Approval...................................................................................................................19
CHAPTER 5: CONCLUSION .....................................................................................................21
RECOMMENDATION.................................................................................................................22
REFERENCES..............................................................................................................................23
APPENDIX....................................................................................................................................25

Title of the research project: To investigate the role of system based accounting theories in
meeting the needs of stakeholders- A study on Hospitality sector Australia.
Requirement 1: Accounting terms
Present report is consisted of various accounting terms which are used by the managers at
hospitality sector. There will be benefits relevant with accounts receivable, payable, assets,
balance sheet as well as cash flow analysis. These kinds of reports helps mangers as well as non-
accounting professionals to understand the requirements as well as functions of such financial
statements.
Background
System based theory is based over understanding the needs or wants of the organisation
in context with gathering the stakeholders. Survival of the business units is based on the interest
of stakeholders such as managers, organisational heads, employees, shareholders, consumers as
well as suppliers and distributors. In the present report, there will be use of various theories
which reflects needs of stakeholders in order to meet the favourable financial position of
organisation. Legitimacy theory helps in evaluating the actual performance of the business with
the expected returns. The fruitfulness of such report is that it has facilitated the professionals of
hospitality industry in Australia that, they can make the favourable efforts in attaining the goals
as well as in profitable decision making.
Hence, stakeholders theory helps the unit in gaining the favourable knowledge related
with business ethics as well as organisational behaviour. Further, there will be researches
conducted over the professionals of leading hospitality units. It will help the investigators in the
attainment of the adequate requirements of such theories. Thus, the study will reflect that
requirements of stakeholder in the better generation of investment which will be utilised as to
meet the target goals of the units. In the present assessment that, the data will be collected with
the help of various primary ans secondary sources such as questionnaires, books and journals.
There will be literature review presented in the report which reflects the benefits and

disadvantages of such theories. There will be various ideas or view of several authors that
intersect the requirements and neediness of stakeholders in the organisation.
Importance of research
An area of study where assumptions as well as methodologies are considered for
applying different principles of financial reporting is known as accounting theory. There are
wide range of accounting approaches and theories available which helps to an industry and
company up to the larger extent. The present study consists with system based accounting theory
which playing role of fulfil needs of the stakeholders. Apart from this, it includes mainly two
concepts which are like stakeholder and legitimacy theory. Basic significance of this study is to
analyse about the roles and importance system based accounting approach in the hospitality
industry of Australia. When an entity of selected sector in Australian going to analyse and
accomplish their requirements then the chosen theory of accounting is one of the important
concept. Moreover, when the firm accomplish needs to stakeholders then able to enhance
revenue and profit easily. Therefore, the study is significant for the enterprises in order to meet
their financial objectives as well.
Research questions
In order to make effective analysis along with assessing valid conclusion some questions
are framed on the basis of research title. Further, major question of the present research proposal
are mentioned below:
Major question
What is the role of system based accounting theories to meet the need of stakeholders in the
hospitality industry of Australia?
In order to provide effectual as well as proper answer of the above stated major question
sub parts are prepared. The reason is that, when small part of a major topic are completed then
aim can be easily accomplished. Therefore, sub-questions of the present research on the basis of
major issue are framed below:
Minor question
 What is the conceptual basis of system based theories in accounting?

 What are the needs and requirements of stakeholders within hospitality sector of
Australia?
 How system based theories of accounting assist in fulfilling the demands of the
stakeholders associated with the hospitality industry of Australia?

CHAPTER 2: LITERATURE REVIEW
Accounting theories can be said that these are the set and collection of assumptions and
methodologies which facilitates the managers and accounting professionals of any organisation
understanding the methods or techniques of the accounting. As according to (Verbeke and Tung
2013) through various studies and subject relevant with the accounting principle and standard
which describes the methods in which a transaction is going to be record. Accounting operates
various monetary and financial tasks in the organisation as it gathered the informations through
various departments and helps the manageress in analysis the financial situations of the firm.
There can be use of such informations in planning, decision making, enhancing the performance
of business as well as employees.
Requirement 2: Concept of Stakeholder Engagement
(Treviño and et.al., 2014) believes that, stakeholder engagement is the method in which
the business can retain the valuable stakeholders. With the help of stakeholders there Wil be
positivity as well as bull in the prices of share of company. Entity will be secure in meeting the
long term debts as there will be consistent investments from the stakeholders. Due to this concept
they have to make the best brand image as well as hold relevant position of the organisation in
the competitive environment. It can be criticised by (Fernando and Lawrence 2014) that,
stakeholder engagement is the waste valuable time as well as the organisational heads are
making the non worthy strategies which are not fruitful or profitable in achieving the targets. It
can be said that, business must focus over improvement of operational performance and create
the huge brand image in market so they will generate the large numbers of stakeholders such as
consumers, investors as well as shareholders which brings strength to the firm.
In accordance with (Harrison and Wicks 2013), there will be implementation of various
new technologies in recording and analysing the transactions of organisation but there should not
be changes in the traditional aspect of operating the business transactions. One should not forget
about the basic knowledge of the accounting terms. As it will be beneficial for the accountant to
handle accounting without any use of supportive devices. (Bridoux and Stoelhorst 2014) stated

that, origin and start up of the accounting theories in the early 15th century, which are used by the
business and various economic bodies in the case of providing loans or monetary benefits to
individuals. The lander records in their books transaction relevant to the granting loan to the
particular person and the purpose, date of the transaction. They also charge interest over the
money they have landed so, it can be said that accounting is the basic need of every daily
operations held.
According to (Verbeke and Tung 2013), there has been implementation of various
theories which are system oriented theories. Legitimacy and stakeholders theories are two
theories which are originated on the concept of improving the accounting management in the
firm as well enhancing the quality performance of the workers. As per changing scenario in the
accounting techniques that there has been drastic changes in the accounting techniques, instead
of using books or handling the guide for making the transactions there has been started the use of
various software, computer devices to calculate the financial position of the organisation. It
would be criticised by (Brower and Mahajan 2013) that, legitimacy is based on the concept that
operations of organisation in the favourable state or they are able to achieve the targeted goals
which builds up the values and norms of organisation.
(Deegan 2016) thinks that, the responsibility of the organisation is to make the
sustainable balance between the social and financial relationships with stakeholders. The study is
based on the analysis over previous and present report of the organisation that helps managers in
making the forecasted report which brings fruitfulness in the operational aspect of the entity.
Professional will be benefited with such measured informations and be abler to make the
strategies to meet the positive performance of the business. They can be able to generate
maximum volume of investors, consumers, employees, committees as well as attract them to
make the fruitful investments in the business. (Baxter 2014) believes that, responsibility of the
firm is based on the corporate legitimacy which helps in pointing out the specific social
movement which bring power to transform risk management and business models in the unit. It
can be said that it will be fruitful for the organisation to have the favourable financial impact that
can be fruitful in attaining the good strength and improve capacity of entity in meeting the
financial requirements in the future.

Requirement 3: Accounting theories
According to (Harrison and Wicks 2013), there has been starting the use of system based
theories such as stakeholders and legitimacy theory which is based on an internal aspect of the
organisation as well as it describe that how a firm is running. It describes that the organisation is
operating in desirable or appropriate manners with in context of all the norms and value of
accounting in the organisation. The disclosure of the financial statement as well as budgetary
reports to stakeholders of organisation it will be fruitful for business to have favourable decisions
and they will be able to enhance the work performances of the operational employees in
organisation. The (Bridoux and Stoelhorst 2014) believes that, this concept or theory of
accounting will bring the strength in the shamanism of accounting report as well as fruitful in the
disclosure of voluntary social and environmental reports of entity. The role of this theory stated
that, it brings out the behaviour of organisation in context with applying disclosure of the
statements that fulfils the requirements of organisation in meeting the objectives as well as give
strength in the survival of it.
In accordance with (Fernando and Lawrence 2014), stakeholder theory is originated from
the CSR methods which describes the framework of the entity throughout the financial year and
the disclosure of reports. Stakeholders helps a business in various field like, management, law,
human resources which are providing the internal strength to business. In internal environment
the worker of the organisation made the fruitful efforts to help in achieving the target aims as
well as making their efforts to improve the organisational performance. There will be use of
various techniques by managers and operational heads in entity, which in context with providing
the essential guideline or training to the employees. For example if an accountant of the firm
would understand concept of handling the books of account as well as understand the value of
disclosure of such reports that there will be no obstacle for the firm in accounting or
bookkeeping. It can be criticised by the (Treviño and et.al., 2014) that, stakeholders are the best
source of generating the funds or profitable achievements. The organisational professionals bring
help in various approaches such as strategic management, system theory, corporate planning,
corporate social responsibility as well as organisational theory.

(Treviño and et.al., 2014) stated that, theories related with any field helps an individual to
understand the adequacy of the subject. There are several departments in an operational unit
which has their own nature of costs and expenses. Sustainability and integrated reporting will
help the organisation in analysing the various kinds of disclosure techniques such as corporate
communication and organisational reporting. The integrated reporting support contact between
two of more firms in accordance with trade and commerce. It describes the framework and
formation of the strategies, governance, prospects as well as performance of the unit which in
context with earning the favourable amount of profit and creation of funds. It will be criticised
by the (Rogowski 2015) that, accounting theories are beneficial in producing the formulation
methods to analyses the data. These kinds of informations helps managers in fetching the
authenticated informations and these helps them in taking the corrective actions in regards with
operational advancement in the performance. Hence, the sustainability reporting is based on the
disclosure of the economic, social, environmental, governance performance, which indicates and
helps entity their actual performance in compare with the expected. The loophole and financial
drawbacks of the entity will be discovered by the preparation of such reports and it helps in
developing the fruitful strategies to overcome such problems.
As per (Rogowski 2015), accounting deals in various operations like financial
improvements, managerial decision making as well as improving the capacity of the organisation
in meeting the short term debts. With the help of financial statement and the cash flow reports an
entity can generate the numbers of investors that helps in raising the funds meeting the future
needs. If the level of investment increases than there will be increase in the volume of funds. The
company will be benefited in making the favourable investments in the future for generating the
funds. These can be stated by (Bitektine and Haack 2015) that, with the help of various
internationally stated accounting standards such as Generally Accepted Accounting Principles
(GAAP) the cash flows as well as the financial statements of the organisation must be compared
with the previous period and there must be use of various ratio analysis such as liquidity ratio,
quick ratios, profitability ratios etc., which helps in analysing the growth and draw backs of the
industry.

CHAPTER 3: RESEARCH METHODOLOGY
In order to analyse and complete research of a specific topic or problem statement, some
tools and methods are undertaken by the investigator. Further, for complete the present research
project some research techniques will be considered which are explained below:
Research Investigation
The tool through which problem of the study is analysed properly and then identified
causes of occurring such issues in the workplace is known as the investigation. As the name, it
clearly says that investigate something in the industry or working environment. Basic two
methods included in this particular aspect which are qualitative and quantitative. In the research
when theories and general concepts are used by avoiding numericals then qualitative tool is
undertaken. On the other side, if the overall research is based on numericals where statistical
tools are required to apply on data set then quantitative is taken into consideration (Neuman and
Robson, 2012). In the present research qualitative investigation method will be used by scholar
which will help to assess roles of the system-based theory in Australian hospitality sector.
Further, it helps to make effective investigation of the issues and make valid decisions due to
which another method is avoided.
Research design
Another tool used in the research is design which supports to prepare overall structure of
the project in an appropriate direction. There are basically three designs associated with this tool
which are such as exploratory, descriptive and experimental. In the study when a particular
statement of problem has to explore and determine proper conclusion on that then exploratory
method is applied. Apart from this, descriptive design helps to the researcher in order to describe
problem, assess appropriate causes of arising it and make valid interpretation (Shuttleworth,
2017). The condition in which new research required to be done on the topic then experimental
design is considered. In the present study of accounting theories i.e. system-based, descriptive
research design will be used by the analyst. The reason for selecting this specific method is that,
it helps for selecting an appropriate and effectual technique for collecting data collection.

Another mentioned two research designs taking more time which lead to create negative impact
on efficiency of the researcher.
Research approach
The research tool which represents overall framework of the study and report at the initial
level is known as research approach. When the analyst consider this then easily able to
accomplish research project in an effective direction. It includes generally two methods which
are inductive and deductive through which an effective research is to be conducted. Under the
deductive approach, study starts which theory base and then hypothesis and observation or
questionnaires are framed and end with confirmation. On the other side, when research starts
with an observation and end with the theory concept then inductive approach is considered. In
the present case, deductive approach to carry out effective research will be undertaken by the
analysts (Mackey and Gass, 2015). On the basis of this, at initial level theories of system-based
and its concepts along with roles will be analysed. After that data will be collected with the help
of selected method like survey questionnaire. Once data has been gathered then researcher go for
applying chosen analysis method which will support for drawing a valid and appropriate
conclusion.
Research philosophy
Apart from the above tools, philosophy is another concept which helps to the investigator
for collecting required information in proper direction. It comprises with basically two kinds of
the philosophies like interpretivism and positivism. In order to gather data and analyse then when
scientific tools and methods are needed in the study then positivism is considered by the
researcher. On the other side, when any kind of scientific approaches not required to use then
interpretivism is taken into account (Flick, 2015). Further, the present research will be of the
qualitative nature due to which interpretivism research philosophy will seem proper. Hence, the
investigator will go through this particular tool in order to analyse role plays by system-based
accounting theory in the Australian hospitality industry for identifying needs of relevant
stakeholders.

Requirement 4: Data Collection
To conduct the surveys in context with improving hospitality sector in Australia
researches has firstly collected the data through two different techniques. These methods are
based on the sources of gathering the information such as primary as well as secondary sources.
It enables researches to gain the adequate data and the requirements of the various stakeholders
in the hospitality sectors (Chan, Fung, and Chien, 2013). These will be beneficial for gaining the
knowledge related with preferences as well as choices of the firm. Hence, researcher has
conducted the surveys on the following basis:
Primary data collection: Information has been gathered by the researchers from the
primary sources such as surveys and questionnaires. They have conducted surveys at various
hospitality sectors to gain adequate informations related with problems or obstacles faced by
organisational professionals in running the business. The main issue is arises that they do not
have the enough funding on which they can improve the functioning of the organisation. It is
analysed by the researchers that there is lack of stakeholders and investors for firms in generating
funds and finance for business operations (Chan, Fung, and Chien, 2013). Researcher made the
survey over the requirements of stakeholders can be satisfied with the help of system based
accounting. Managers of the leading hospitality industry showed their positive response towards
it as well as share their problems related with operational aspects of entity. There must be
improvements of several techniques
Critical appraisal of Primary data collection:
Data collection and analysis are related with gathering the information as well as
understanding the needs of stakeholders in the organisation. There are several sources related
with the collection of data such as primary and secondary techniques. These methods are consists
of different ways of gathering the information like, primary data will be collected through
Questionnaire, surveys as well as interviews. This helps managers in gaining the adequate data
relevant with consumers preferences, choices as well as current trend in the market. These
methods are fruitful for business in analysing requirements of the clients as well as they will be
able to make the favourable changes as well as adopt new techniques to provide innovative