Accounting Theory: Employee Benefits Analysis and Comparison Report

This report provides an analysis of employee benefits, drawing on two accounting articles. The report explores the concept of employee benefits, which are payments to the employee by the organization, and the impact of these benefits on employee behavior, productivity, and company performance. The report also provides a comparison between the two articles, highlighting their similarities and dissimilarities. The first article discusses the influence of benefit systems on employee behavior, while the second focuses on the effects of benefits on employee productivity. The report also outlines the implications of these studies for various stakeholders, including shareholders, accountants, and accounting regulations. The report emphasizes the importance of understanding and effectively managing employee benefits for enhanced organizational outcomes and employee satisfaction.

Accounting Theory and
Current Issues
Date : 29th September, 2018

Employee Benefits
• Employee benefits as the name suggests are benefits
provided to the employee by the organization in which they
are employed. Employees are paid both in cash and kind,
the various elements of employee benefits includes return
on investments; domestic partner benefits; paid time off;
other fringe benefits like service leaves, termination
benefits etc

Article 1
• In the first journal, the authors have discussed about
various attributes of a benefit system that have influence
on the behavior and attitude of the employees, employees’
participation, communication quality and system quality.
With an effective benefit system an organization is able to
retain its employees which on the other hand provide the
organization with a competitive edge which increase their
ability to attract more employees and create goodwill in the
market (Sinclair, et al., 2007)

Article 2
• The focus of the authors of the second journal is the effect
of employee benefits on the productivity of the employees.
The authors have addressed that there are both positive as
well as negative impact of the employee benefits on the
employee productivity. The authors have discussed the
importance of understanding the effects of the employee
benefits both on the individuals as well as the company
(Kang, et al., 2016).

Similarities Between the two articles
• Both the journals have emphasised on the significance of
the employee benefits
• Both the journals the authors have discussed about the
positive impact of employee benefits on the employees
(Alexander, 2016).
• .

Dissimilarities between the two articles
• The authors of the first journal have discussed about the
various indicators of benefit efficiency and effectiveness in
their journal while the second journal is about the effect of
employee benefits on employee productivity.
• While in the first journal, the authors have discussed only
the positive effect of employee benefits, the authors of the
second journal have addressed the negative impact of the
benefits on the productivity as well (Choy, 2018).

Specific Outcomes
• Both the articles have different implication for different
category of stakeholders that includes the shareholders,
Australian accountants, the accounting regulations.
• The major implication of the two studies includes that it will
create awareness among the shareholders with respect to
the treatment and respective disclosure of employee
benefit and make them aware about the capabilities of the
management (Belton, 2017).

References
• Alexander, F., 2016. The Changing Face of Accountability. The Journal of Higher Education,
71(4), pp. 411-431.
• Belton, P., 2017. Competitive Strategy: Creating and Sustaining Superior Performance.
London: Macat International ltd.
• Bromwich, M. & Scapens, R., 2016. Management Accounting Research: 25 years on.
Management Accounting Research, Volume 31, pp. 1-9.
• Choy, Y. K., 2018. Cost-benefit Analysis, Values, Wellbeing and Ethics: An Indigenous
Worldview Analysis. Ecological Economics, p. 145.
• Kang, D., Yu, G. & Lee, S., 2016. Disentangling the effect of the employee benefits on the
employee productivity. The Journal of Applied Business Research, 32(5), pp. 1447-1458.
• Sinclair, R., Leo, M. & Wright, C., 2007. Benefit System Effects on Employee Benefits
Knowledge, Use, and Organizational Commitment. Journal of Business and Pyschology,
20(1), pp. 3-32.