Contemporary Accounting and Other Issues Analysis: A Detailed Report

This report provides an in-depth analysis of contemporary accounting issues, focusing on ethical considerations, corporate governance, and sustainability development within the context of the modern business environment. It examines the evolution of accounting practices, highlighting the shift fr...Read More

Running head: ANALYSIS OF CONTENPORARY ACCOUNTING AND OTHER ISSUES
ANALYSIS OF CONTEMPORARY ACCOUNTING AND OTHER ISSUES
Name of the Student
Name of the University
Author Note

1ANALYSIS OF CONTENPORARY ACCOUNTING AND OTHER ISSUES
Executive Summary:
The aim of the study is to identify the problems and the importance of contemporary
accounting. The study defines the scope, importance and certain obstacles in application of
contemporary accounting system. As per the study it states the latest introduction of sustainability
reporting and corporate governance in the context of contemporary accounting system. As
disadvantages of traditional accounting system failed to depict a complete and reliable picture of
financial statements and reports, the emergence of contemporary accounting has explored a new
aspect of accounting system in the modern business world.

2ANALYSIS OF CONTENPORARY ACCOUNTING AND OTHER ISSUES
Table of Contents
Introduction:..........................................................................................................................................4
Discussions:...........................................................................................................................................4
Research Methodology:.....................................................................................................................4
Research aim:....................................................................................................................................4
Research Objective:...........................................................................................................................5
Research Question:............................................................................................................................5
Research Design:...............................................................................................................................5
Data collection:.................................................................................................................................6
Data analysis:....................................................................................................................................6
Sample size:......................................................................................................................................6
Ethical Issues:...................................................................................................................................7
Limitations:.......................................................................................................................................7
Evaluation of sustainability, regulatory and ethical issues:....................................................................7
Critical evaluation:................................................................................................................................8
Literature review:..................................................................................................................................9
Background:......................................................................................................................................9
Problem statement:..........................................................................................................................10
Rationale:........................................................................................................................................10
Reference:............................................................................................................................................11

3ANALYSIS OF CONTENPORARY ACCOUNTING AND OTHER ISSUES
Introduction:
Contemporary accounting or the present method of accounting is the backbone of the present
organisational structure. With the passage to time the traditional method of accounting system has
gone through a lot of change and alterations. The researchers are still engaged in exploring the new
perspective of contemporary accounting system in the competitive business world. The analysis of the
issues relating to contemporary issues in accounting depicts the true picture of the application of
accounting standards, polices, inclusion of different system of accounting and the continuous changes
on the existing techniques for better presentation of the financial reports of the organisation. Therefore
the assignment on analysis of contemporary accounting and other issues will focus on ethics and
corporate governance, evaluation of regulatory framework on accounting and sustainability
development from the view point of five ASX listed companies named Boral Ltd, Raptis Group,
Caltex Australia Limited, Westfield, Woolsworth and Sydeney Airport. The following paragraphs will
above stated issues and critically analyse them.
Discussions:
Research Methodology:
Research methodology defines a unique strategy of thinking that helps to prepare a
comprehensive framework on analysing the situation, detecting the problem, deficiencies, rather any
changes and bring out the appropriate solution of the particular situation (Naufahu 2018).
Research aim:
The aim of the topic is identify the effect of changes in the regulations of accounting standard
and theories and the importance of sustainability development and maintaining proper ethical
guideline to control internal conflicts to bring out the actual essence of contemporary accounting
system in the competitive business environment.
Research Objective:
The objective of the research is as follows:

4ANALYSIS OF CONTENPORARY ACCOUNTING AND OTHER ISSUES
1. To understand the concept and scope of contemporary system of accounting.
2. To identify the advantages of the change in accounting policies and standard.
3. To realise the importance of corporate governance and sustainability development.
Research Question:
The research questions are as follows:
RQ 1: What is the meaning and scope of contemporary accounting?
RQ2: What are the advantages and the confliction change in accounting policies and standard?
RQ3: Why it is important to maintain ethical, corporate governance and sustainability
development?
Research Design:
Research design is a very important part of methodology. It refers to the proper guidelines of
conducting procedures of research to rectify the issues and able to take reasonable steps accordingly.
Therefore in other words it provides the way to do the research as per the methodology (Creswell and
Poth 2017). There are various types of research design which can be segregated in a following manner
(research-methodology.net, 2019):
a. Qualitative research
b. Quantitative research
c. Descriptive research
d. Analytical research
e. Applied research
f. Fundamental research
Here in this study the qualitative research is an appropriate method of conducting research.
Qualitative research is recognised as explanatory research which means that information collected
through qualitative research cannot be analysed numerically.

5ANALYSIS OF CONTENPORARY ACCOUNTING AND OTHER ISSUES
Data collection:
The assignment on the above stated topic will be based on both primary and secondary data.
While performing the whole research process primary data will be accumulated through survey,
conducting interviews and thorough observation. On the other hand to make the research more
concrete information collected through secondary data is very important. Secondary data is based on
journal articles, newspaper articles, books, government report.
Data analysis:
Since the research will be backed by qualitative data analysis the information should not
include survey. The data analysis process is particularly depending on interviews, video clippings and
other documents. Therefore in order to analyse the data collected through qualitative analysis certain
steps to be followed, such as, proper application of the codes, selection of appropriate method and
finally preparing the summary of the collected information.
Sample size:
Application of sampling techniques will make the study more reliable and strong. Thus, the
study will be supported by both probability and non- probability techniques. It is assumed that 100
employees from each organisation will be requested to involve in the process of survey. The key
managerial persons will be invited to share their views on contemporary accounting issues.
Ethical Issues:
While conducting the survey and the research process proper ethics should be maintained.
The research will not advertise or support a particular company. Further there is an assurance of not
utilising any symbolic identity for personal advantages and the outcome will be neutral. One of the
most crucial aspect of ethics is no one will be coerced or influence illegally to take part in the survey.
Limitations:
The limitation of the study is proper application of sampling techniques. Again there is a time
constraint along with financial crisis. Further it can be assumed that the employees and the top level

6ANALYSIS OF CONTENPORARY ACCOUNTING AND OTHER ISSUES
managers will cooperate regarding the process of survey since these reputed firms of Australia will
prioritise their privacy.
Evaluation of sustainability, regulatory and ethical issues:
The changing and competitive business environment profit earning capacity has remarkably
increases. Though the improved has increased the level of performance of the business the complexity
in accounting system has also increased. The study topic related to contemporary accounting issues
explains one of the most fundamental constraints such as ethical issues. The concept of ethical issues
relating to accounting is wide enough. There are various situation where professionals of accounting
and the key managerial persons are allowed to access confidential documents which is not for the use
of public. The ethics and strong corporate governance hinders the illegal access of confidential
documents and other activities of the organisation that affect the public interest (West 2018). Again in
many cases where accountants are forced to do increase the profit or value of asset or alter the amount
of loss due to continuous pressure from the higher authorities that brings the ethical conflictions
within the organisation. There evaluation of ethics and corporate governance introduced effective
steps to control the unethical activities such as charging penalties or fines and sometimes both along
with imprisonment (Accountests.com, 2017). On the other hand the recent competitive trend of
business organisation and profit motive made the entrepreneurs to ignore the social responsibilities. In
the present situation the one of main reasons of pollution and global warming is industrial dust and
the over utilisation of non-renewable resources are also giving threat to the future (Ng 2018).
Therefore as component of contemporary accounting system the introduction of the idea of
sustainability report will provide a proper guidelines in controlling the pollution and helps to take the
proper responsibilities towards the environment and society such as employment generation,
reduction of wastages, recycling of industrial wastages and promotion of educational or health camp
(Schaltegger 2018 ). Further the evaluation of regulatory issues has brought transparency in the
presentation of financial report for particular period. The increased regulatory issues such as
noncompliance of accounting standards, relevant accounting policies distorted the growth and
expansion of business organisation. Thus, as part of contemporary accounting system the evaluation

7ANALYSIS OF CONTENPORARY ACCOUNTING AND OTHER ISSUES
of regulatory framework will rectify the violation of the rules and assures true and fare presentation of
accounting statement (Laux and Stocken, 2018).
Critical evaluation:
The establishment of International Accounting Standard Board has change the traditional
system of accounting and traduced new system of accounting, policies and principles that provides an
improved procedure of maintaining the financial statement. The standards as per IASB covers all the
aspect of accounting such as payment of tax, valuation of assets and liabilities, accounting of stock ,
evaluation of cost incurred in research and development and calculation of depreciation of the value
of assets (Saylordotorg.github.io, 2018). However, IFRS and IAS are continuously upgrading the
accounting standards and regulatory framework thus it is difficult to keep pace on the changing
situations. Therefore, the government of Vietnam has to introduce 26 accounting standards as per
Vietnamese accounting standard during the period 2001 to 2005. Thus in this situation business
organisations have to prepare two sets of accounting standard and prepared the financial statement
accordingly. Therefore, the change in contemporary accounting issues enhance the cost of preparing
financial report (Do, D et al. 2018).
Literature review:
Background:
Traditional accounting system is the backbone of the growth and development of the
organisation at the initial stage. The recent trend of business are accepting the improvised accounting
systems such as cloud based accounting system and computerised accounting platforms to make the
overall accounting system more flexible, cost saving and less time consuming. In the context of
traditional accounting system there are certain deficiencies that requires immediate development. The
one of the most significant drawback is mistakes in entering the data. Therefore, in this situation
accountants are forced to recapitulate the data entry process which takes a lot of time and labour
(techfunnel.com, 2018). Further as per the traditional accounting system physical copy of evidences

8ANALYSIS OF CONTENPORARY ACCOUNTING AND OTHER ISSUES
and the accounting information are maintained which can be easily misplaced. Thus, the importance
of contemporary accounting is realised in the modern business world.
Problem statement:
According to the study the importance of true and fair picture of financial report is focal point
of modern business environment thus compliance of accounting policies and accounting policies are
the most important part of contemporary accounting system. The introduction of latest policies,
frequent changes in accounting standard help to determine the financial position of the organisation.
On the other hand the changes in accounting system has increased the cost and confusion among the
accountant and the entrepreneurs.
Rationale:
The importance and relevance of contemporary accounting is the indispensable part of
today’s business world since the aim of this system is to fair representation of the report, make the
entrepreneurs to realise that the business organisation is a part of society and encourage them to
involve in sustainability development. Thus the continuous development of accounting system is the
positive aspect in the recent competitive environment.

9ANALYSIS OF CONTENPORARY ACCOUNTING AND OTHER ISSUES
Reference:
Accountests.com. (2017). Ethical Issues in Accounting: 4 Pieces of Advice | Accountests. [online]
Available at: https://www.accountests.com/news/ethical-issues-in-accounting-4-pieces-of-advice/
[Accessed 2 Oct. 2019].
Creswell, J.W. and Poth, C.N., 2017. Qualitative inquiry and research design: Choosing among five
approaches. Sage publications.
Do, D., Tran, M., Nguyen, T., Truong, D. and Pham, D., 2018. Determinants influencing differences
of financial statements under Vietnamese accounting and international accounting: The case of
Vietnam. Management Science Letters, 8(6), pp.555-568.
Laux, V. and Stocken, P.C., 2018. Accounting standards, regulatory enforcement, and
innovation. Journal of Accounting and Economics, 65(2-3), pp.221-236.
Naufahu, M., 2018. A Pasifika research methodology: Talaloto. Waikato Journal of Education, 23(1).
Ng, A.W., 2018. From sustainability accounting to a green financing system: Institutional legitimacy
and market heterogeneity in a global financial centre. Journal of cleaner production, 195, pp.585-592.
research-methodology.net (2019). Types of Research - Research Methodology. [online] Research-
Methodology. Available at: https://research-methodology.net/research-methodology/research-types/
[Accessed 2 Oct. 2019].
Saylordotorg.github.io. (2019). International Accounting Standards. [online] Available at:
https://saylordotorg.github.io/text_international-business/s19-01-international-accounting-stand.html
[Accessed 2 Oct. 2019].
Schaltegger, S., 2018. Linking environmental management accounting: A reflection on (missing) links
to sustainability and planetary boundaries. Social and Environmental Accountability Journal, 38(1),
pp.19-29.

10ANALYSIS OF CONTENPORARY ACCOUNTING AND OTHER ISSUES
Test, W. and important, T. (2017). Ethical Issues in Accounting: 4 Pieces of
Advice | Accountests. [online] Accountests.com. Available at:
https://www.accountests.com/news/ethical-issues-in-accounting-4-pieces-of-
advice/ [Accessed 2 Oct. 2019].
West, A., 2018. After virtue and accounting ethics. Journal of Business Ethics, 148(1), pp.21-36.
techfunnel.com (2018). Advantages and Disadvantages of a Traditional Accounting System. [online]
Techfunnel. Available at: https://www.techfunnel.com/fintech/advantages-and-disadvantages-of-a-
traditional-accounting-system/ [Accessed 2 Oct. 2019].