StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Contemporary Issues in Accounting - Essay Example

Cite this document
Summary
The essay “Contemporary Issues in Accounting” looks at an international financial reporting standard requiring disclosure of environmental performance information. It is very essential to maintain and develop a proper accounting theory for the correct implementation of accounting procedures…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.7% of users find it useful
Contemporary Issues in Accounting
Read Text Preview

Extract of sample "Contemporary Issues in Accounting"

Download file to see previous pages

Around the world, governments (typically following the lead of practice) have begun to take notice, putting new disclosure regulations on the book. Despite these new regulations, significant questions remain about whether, and, possibly more importantly, how corporate disclosures about their social, environmental, and economic practices should evolve." (Corporate Disclosure of Social and Environmental Data Mandatory Vs Voluntary. 2004). If a particular organization is operating with an appropriate emphasis on its environmental issues, it means that it is focused on sustainability as well as the well being of the particular society in which the organization exists.

Nowadays, the accounting system requires the disclosure of environmental facts with respect to financial accounting reports. The main purpose of preparing the financial accounting report is to provide useful information about the business to its ultimate users. Such categories of users shall be owners, shareholders, investors, employees, suppliers, creditors and the public as a whole. Moreover, the report so made should be more relevant, it should possess the quality of materiality, accuracy, and comparability.

Environmental performance and economics measurements relate to a certain extent, as far as the accounting policies and reporting procedures are taken into consideration. "Environmentally driven innovation can create shareholder value by lowering cost, improving production processes and service delivery, and helping to find new markets. Increased process efficiency is an example of a proven sustainability strategy for decreasing cost and adding revenue, thereby improving profitability." (Slater and Gilbert 2004).

The users of accounting reports should have a piece of thorough knowledge about the changes that take place within the organization as well as in a matter of accounting standard context. The accounting report should disclose the environmental performances, for the purpose of easily identifying and evaluating whether the organization is running as per the requirements of the society. Moreover, this helps to develop the reputation of the organization by comparing various environmental data obtained from the annual accounts of the company.

"Investors and users of financial statements need information about the impact of environmental risks and liabilities on the financial position of the company, as well as the company's attitude towards the environment and its environmental performance, to the extent that these factors may have consequences for the financial health and performance of the company. Regulatory authorities have an interest in monitoring the application of environmental regulations by companies and the costs incurred as a result.

But companies' voluntary disclosure of environmental data in annual accounts and annual reports is low. Users of annual reports have an interest in ascertaining to what extent environmental protection is an integral part of the company's policies and activities and what costs and benefits are associated."

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Contemporary Issues in Accounting Essay Example | Topics and Well Written Essays - 500 words, n.d.)
Contemporary Issues in Accounting Essay Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/finance-accounting/1508088-contemporary-issues-in-accounting
(Contemporary Issues in Accounting Essay Example | Topics and Well Written Essays - 500 Words)
Contemporary Issues in Accounting Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/finance-accounting/1508088-contemporary-issues-in-accounting.
“Contemporary Issues in Accounting Essay Example | Topics and Well Written Essays - 500 Words”. https://studentshare.org/finance-accounting/1508088-contemporary-issues-in-accounting.
  • Cited: 2 times

CHECK THESE SAMPLES OF Contemporary Issues in Accounting

Case study: Kakadu: mining versus intangible values, from textbook, Case study 14.2, p.407-408

Kakadu: Mining Versus Intangible Values Name: Institution: KAKADU: MINING VERSUS INTANGIBLE VALUES The focus of the debate on Kakadu national park is whether it is feasible to carry out mining in Kakadu's conservation zone without causing grievous harm to the area around the mines, as well as the idea that the mining activities would compromise the core values that have seen the park designated as a world heritage site....
3 Pages (750 words) Essay

Contemporary Issues in Accounting and Finance

Contemporary Issues in Accounting and Finance Your instructor Introduction Any Individual or Organization that participates in auditing the financial or legal statements is entitled to freedom.... Some of the good principals are now in place and should be in mind of the any auditor or accounting profession.... hellip; Whoever undertakes to audit the legal issues should have a clear target of evaluation and analysis.... 1), a debate about the freedom of the person when conducting and assessing the legal issues forms the basis of the story....
5 Pages (1250 words) Essay

Contemporary Issues in Accounting and Finance

Contemporary Issues in Accounting and Finance Introduction With the collapse of global corporate giants like WorldCom and Enron, organizations give particular focus to corporate governance principles, which particularly emphasise the importance of statutory auditing.... This paper will critically evaluate this statement with particular reference given to some fundamental financial/accounting/auditing concepts and external studies.... Under historical cost accounting, assets and liabilities are valued at original acquisition price and any increase or decrease in their market value over the years is not taken into account (Shome 1995, p....
6 Pages (1500 words) Essay

Theoretical concepts of accounting

This report presents a review and discussion related to the different theoretical concepts of accounting.... he areas discussed in the report include arguments related to the free market perspective with respect to the regulation of accountingaccounting Theory This report presents a review and discussion related to the different theoretical concepts of accounting in the practical world.... The areas discussed in the report include arguments related to the free market perspective with respect to the regulation of accounting and their validity after the recent financial crisis, difference between the assumptions underlying the capital market research and behavioural research and main criticisms of Positive accounting Theory....
4 Pages (1000 words) Essay

Deficiency of Ethical and Professional Accountants

21-25, 2009) has indicated that everything goes down to one end that is accounting and its principles.... A huge number of studies (Sorkin, 2008) have indicated that there has been deficiency of ethical and professional accountants in the profession that were involved in manipulating accounting rules and metrics on short-term basis that resulted in a financial issue for the organizations, as well as the banki.... In an article of the New York Times, author wrote, "FAS 157 represents the so-called fair value rule put into effect by the Federal accounting Standards Board, the bookkeeping rule makers....
4 Pages (1000 words) Case Study

Ethical Issues in Business Financial Reporting

From the paper "Ethical issues in Business Financial Reporting" it is clear that consolidated reports of condition and income are submitted by banks.... hellip; At times the choice of an accounting rule may impact the profitability and in turn the distribution of profits to shareholders, salaries, and pension funding.... This is an economic effect of unethical accounting.... nbsp; Micro type of manipulation is at an individual level whereby the accounting disclosures are altered in such a manner that a different view of reality is conveyed to the users of the report....
4 Pages (1000 words) Assignment

International corporate accounting

Financial accounting Standards Board abbreviated as FASB is a non-profit organization based in the US that came to existence in 1973 to replace the accounting Principles Board (APB) and the Committee on accounting Procedure (CAP) with a purpose of setting up and improving… Securities Exchange Commission (SEC) approves the standards set by the FASB.... These standards are crucial in making important economic decisions In 1934 a Securities Exchange Act was formulated giving the SEC a statutory authority of setting up standards for financial accounting and reporting but this would target publicly held companies only....
4 Pages (1000 words) Essay

Aramex Distribution Strategy

Tilling, Contemporary Issues in Accounting, Milton, Qld.... In conformity with the fact that most of the business service delivery of Aramex is based on online protocols, the company has introduced several distribution channels that deal with customers directly through an online system1....
1 Pages (250 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us