Theoretical concepts of accounting

Theoretical concepts of accounting Essay example
Masters
Essay
Finance & Accounting
Pages 4 (1004 words)
Download 0
This report presents a review and discussion related to the different theoretical concepts of accounting.The areas discussed in the report include arguments related to the free market perspective with respect to the regulation of accounting…

Introduction

Proponents of free market approach have also supported a wait and see approach in relation to economic and financial changes taking place all over the world. In fact, the free market proponents reject the idea of intervention by governments for the sake of adjusting the distracted economy, and have based their arguments on the claim that demand and supply forces interact to ultimately bring stability in the distracted economic conditions (Deegan and Unerman; Rankin, Stanton and McGowan). However, malpractices of those charged with the governance and misuse of authority often overrun the expected balances to be attained in a free market model through demand and supply interaction (Deegan and Unerman; Rankin, Stanton and McGowan). One of the most relevant and quotable example in this regard can be of the Enron Scandal, which obviously had nothing to do with the free market model and demand and supply forces, but government intervention to safeguard the interests of general public through Sarbanes Oxley Act (SOX) was deemed appropriate (Deegan and Unerman; Rankin, Stanton and McGowan). ...
Download paper
Not exactly what you need?

Related papers

theoretical concepts of Risk Management in relation to projects
Thus, the study is focused on presenting a view on risk management. Objectives of the Study The risk management is necessary to be able to survive and plan the different problems and trials facing the organisations. The study is aimed to review the theoretical concepts of risk management specifically related to projects and practical implementation of strategies, plans and procedures. In addition,…
Management Accounting
Available at: . Anderson, DR, Sweeny, DJ, Williams, TA & Martin, RK 2007, An introduction to management science: Quantitative approaches to decision making, 12th edn, Cengage Learning. This book is quite helpful in the field of management accounting and the quantitative perspectives in decision making. The book has a great deal…
Financial Accounting Theory
The accounting frameworks are there for wide use of the financial statements of a company. A common framework of accounting would certainly be useful for the stakeholders of the company. But the criticism of the conceptual framework arises as these are not found so useful. The arguments are that the frameworks are not useful as there is lacking of practical evidences. The paper is an attempt to…
Developing a conceptual framework is an impossible possibility
It works on the determining the basis of theoretical theories, measurement of transactions (e.g. historical value) and their reporting lines to their end users (SA, 2011). Historical View in Conceptual Framework: The sophistication and excessive increase in businesses and accounting disclosures gave birth to the rules and regulations in accounting standards. A generalised approach was established…
The two main theoretical approaches in accounting theory are the normative approach and the positive approach. The two alternati
The study of accounting theory enables to understand our past and provide us a positive reception of how our recent practices and problems came into being. Historical investigation also tells that certain problems are continuing and may not be capable of an everlasting solution for example accounting for intangible and changing price levels. The accounting theory’s development came up because of…
Finance and Accounting Concepts
It consists of financial activities which include collecting, recording, analyzing and communicating the financial information to others. The financial data is a collection of facts which is expressed in numerical symbols and characters. The major task of the accountant is to records the financial transactions and converts data into financial information. The study will deal with the various…
Compare and cotrast the accounting conceptual framework and the accounting regulatory framework in the Uk?
The accounting conceptual framework in the UK One of the elements of the accounting conceptual framework, as applicable in the United Kingdom, relates to goal of financial statements that is to offer information on “financial position, performance and changes in financial position” of an enterprise (Rolfe 2006, p. 123). The subject information must however be significant to the entity’s…