It is obvious that corporate social responsibility is a part which is very important for running the businesses successfully. But following the predefined the environmental policies compels businesses to behave in a certain a way, for example using high quality raw material, and atmosphere friendly plants. It brings cost to the business which is certainly not favorable for businesses. So, businesses have started deceiving the regulatory institutions and other stakeholders. They have found their ways in fulfilling the requirements of the regulatory bodies. There are loop holes in the system which companies use for manipulating the data and information shared with the stakeholders (Hooghiemstr, 2010). Businesses always communicate with their stakeholders in written form. So there is a lot of documentary material involves. They are shared with stakeholders periodically. Companies which are always under pressure by their stakeholders seem to be using different tactics for the satisfaction of their stakeholders (Clatworthy and Jones, 2001). For that they give out the company information in a manner that will always highlight the areas with positive performance figures regarding company. They never talk about their weaknesses. This is called impression management. Two types of information are presented in the above mentioned documents of company. One is related to the qualitative data and the other is about calculated accounting figures. The qualitative narratives are highly manipulated. They never give out the exact matter. The quantitative narratives used in financial reporting are obtained from accounting books and financial statements of the company (Jones & Shoemaker, 1994). The usage of rhetorical devices in following accounting standards helps companies to manipulate the opinions of the readers of those reports. Rhetorical devices are related to accounting standards which allows businesses to present their accounting information in a customized format of their choice. The accounting narratives used in accounting reports mostly are out of the consideration of the auditors. The reason is that they do not come under the scope of auditing. This gives room to the companies to manipulate the information they share with their stakeholders. Generally, the external auditors of the company are restricted to check limited amount of information in financial records of the firms. The accounting narratives which are outside the scope of auditing have been given the name of discretionary accounting narratives by Brennan & Merkl-Davies, 2011. Impression management is complicated. Because while following the impression management strategy companies have to look into the interests of all stakeholder, then they decide which of them are at conflict with business, and which of them are conflicting with each other. Then they look at the multiple choices available to them for communicating their financial information. Then they analyze all the choice and choose the best, which aids in attaining the utmost interests of
The firms in different industries have a conflicting nature in terms of their responsibilities towards society.Their scope of responsibilities clearly depends upon the area in which they are doing business…
Advanced Accounting Theory & Practice Introduction International Accounting Standard (IAS) 1 provides a framework for the Preparation and Presentation of Financial Statements. This accounting standard is comprised of information necessary for preparing and presenting the financial statements.The basic purpose of this standard is to enable different users to make effective economic decisions with the use of financial and non-financial information.
Year 2001, was marked as the year of establishment of International Accounting Standards Board (IASB). It was established with the idea to develop and implement International Financial Reporting Standards (IFRS). First of the IFRS was issued in the year 2003.
It was found that factors like lack of information, the fraudulent information or possible connivance of Enron executives the companies auditor may have caused the non-impounding of various factors to the
air value accounting prompted the Financial Accounting Standards Board (FASB) to issue a new standard, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (FAS157). This standard provides comprehensive guidance to help firms in estimating their fair
It states the major benefits of harmonization of accounting standards in international trading activities. It also states the problems that the harmonization of accounting standards would solve in case it is successfully implemented. Additionally,
A critical perspective of accounting is mainly concerned with promoting a better society. Critical accounting research is based on a classical technique that challenges the present structure and nature of the society. Environmental and social
2 pages (500 words)Essay
Hire a pro to write a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Apply my DISCOUNT
Got a tricky question? Receive an answer from students like you!Try us!
Let us find you an essay for FREE
Contact us via Live Chat, call us at +16312120006or send an email to firstname.lastname@example.org