Assignment: Accounting Theory
Question I
Let us assume that the government has become concerned that existing disclosure regulation tends to fixate on the financial performance of organisation but fails to address other aspects of corporate performance, including failure to provide information about corporate social and environmental impacts as well as about various initiatives and investments an organisation has undertaken to improve its social and environmental performance. As such, the government has decided to introduce legislation that will require business corporations to provide information about the social and environmental impacts of their operations, as well as the social and environmental initiatives undertaken by the corporations.
Required:
You are required to do the following:
1. Explain from a 'public interest theory perspective' the rationale for the government introducing the legislation and how the government will assess whether any proposed legislation should actually be introduced.
2. Predict from a ‘capture theory of perspective ‘the type of constituents that will benefit in the long run from any social and environmental disclosure legislation.
3. Predict from an ‘economic interest group perspective' whether any potential legislation to be introduced will lead to an increase in the accountability of corporations in relation to their social and environmental performance despite any implications that this increased corporate accountability might have for the financial success of large but heavily polluting organisations.
Question II
Using the various theories that you have learnt so far (Accounting theories: positive theory, public interest theory perspective, capture theory of perspective, economic interest group perspective and more) please explain in your own words:
1. What does ‘accountability' mean?
2. What aspects of corporate performance do you believe that a business organisation should be accountable for?
Format your assignment according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.