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International financial accounting and theory - Term Paper Example

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Contemporary accounting has emerged to be one of the diverse and dynamic concepts in financial accounting and reporting. Accounting practices of the modern times are faced with numerous factors to account for in the contemporary business environment. …
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International financial accounting and theory

Accounting theories are primarily developed to enhance economic decision making prior to financial record keeping and reporting. In the modern times however, industrial activities have had both positive and negative impacts especially on the society and the environment. The government and the society have consistently aired their concern and pressure on companies to address the adverse impacts of business undertakings on both environment and society. In this regard, social and environmental accounting theories have been integrated into the accounting practices to account for these concerns. The strengths, weaknesses and limitations of these theories and their position in the current accounting frameworks are evaluated in this paper.
Social theory in accounting practices is concerned with the social responsibility of entities in regard to their recording keeping and financial reporting. Although it is not necessary for companies and business entities to prepare income statements and balance sheets that pertain to social responsibilities, it is important for such entities to evaluate their social achievements and success by evaluating their social performance aspects. Social accounting is used to measure this performance and report the social responsibility of a firm given the social activities it undertakes (Business and Economic Review, 2006, p.21). ... Read More
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