StudentShare solutions
Got a tricky question? Receive an answer from students like you! Try us!

Essay example - Voluntary Disclosures and Accounting Theories

Only on StudentShare
Finance & Accounting
Pages 5 (1255 words)
Finance and Accounting  Contents Contents 2 Introduction 3 Voluntary disclosures and accounting theories 3 Conclusion 7 Reference 8 Bibliography 10 Introduction Every company periodically discloses the information about its transactions and other activities in form of the annual report…

Extract of sample

Accounting principles are based upon some principles and one of the important principles of accounting is full disclosure principle. As per the full disclosure principles the companies must disclose all the relevant information about the company like the financial statements, accounting policies followed, additional information etc. Apart from the various mandatory disclosures many companies discloses many voluntary information like sustainability report, cost of training employees etc. All these activities add value to the organisation and thus are important for the stakeholders to take an informed investment decision. Voluntary disclosures and accounting theories The concept of voluntary disclosers originates from a variety of accounting theories. Therefore the relevant accounting theories have been studied in order to understand the need of voluntary disclosure of information. The need of voluntary disclosure originated from the two basic theories namely normative theory and positive theory. Normative theories: The basic premise behind the normative accounting theories is the subjective opinion which tells one what is good and what should be done. This is an opinion based theory which is based on the standards. ...
Download paper
Not exactly what you need?

Related papers

International Financial Accounting and Social and Environmental Theory
The primary issue concerning social and environmental theory is the way the society determines developments, goals, and innovations in accounting practice. It is generally agreeable that the society and environment in which accounting practices are applicable affects its development to some extent. However, the extent and the framework with which the social and environmental theory has influenced…
8 pages (2008 words)
Accounting Theory: Firms Disclosure of Information
The investor confidence can be won by disclosing the information about the company in public. The information should be accurate and properly audited by the auditors. There are various accounting theories which are stated by the researchers. This paper is an attempt to analyze the reason of disclosing various type of information by the firm using the variety of accounting theories. Accounting…
5 pages (1255 words)
Why Do Firms Voluntarily Disclosure Information?
Economic theories propose that it is better for firms to provide additional information to investors and financial analysts, because the voluntary disclosure assists investors and shareholders to analyse the firm and thereby to estimate future rate of returns on their investment. This paper will discuss why modern firms voluntarily disclose their information. Voluntary disclosure of information…
5 pages (1255 words)
financial accounting theories in a real life
It is used to communicate various aspects of the business. There are diverse kinds of theories that prevail in financial accounting. It has been observed that there prevails no accounting theory which is a universally accepted theory of financial accounting. Different researchers have dissimilar views regarding financial accounting theories (McGraw-Hill, 2006). There are different types of…
8 pages (2008 words)
It may be argued that the above definition portrays a simplistic view of sustainability. Hence, one of the greatest difficulties encountered by corporations is to break down the sustainability phenomenon into objective goals. According to O’Dwyer’s definition of what he terms as managerial capture, corporations must define sustainability for themselves keeping in view their primary concern of…
4 pages (1004 words)
Corporate social responsibility reporting
CSER also commonly plays a central role in presenting a good picture of corporate accountability. For a long time now, CSER has been used as the best tool to encourage corporate strategies, policies and management decisions aimed at minimization of adverse environmental impacts of companies’ operations (UNEP, 1998). Since the development of the practices of corporate social environmental…
6 pages (1506 words)
Do corporate social responsibility (CSR) reports provide shareholders and stakeholders with useful information on corporate soci
Sustainability disclosure was the province of a few community oriented or unusually green companies. Today, it is a best practice employed by companies worldwide. CSR reporting helps organisations to evaluate their social and environmental scenarios and improve the efficiency of operations and conserve natural resources which in turn are important factors for shareholders, employees, and…
5 pages (1255 words)