Accounting and society--litarature review - Essay Example

In this case, the two environmental approaches that accounting practices can be conducted include the free market and the pro-regulatory approaches. These approaches have been interchangeably used for the interests of the society (Buckley & Weston 2006, p.16). In the recent past, the adoption of the free market was considered ideal but until the world economic crisis experienced in 2008, several issues have been aroused which necessitate the adoption of regulation approaches. However, the consideration of the ideal environmental approach necessitates the analysis of their effects in the economy.

The free-market approach to accounting information entails the treatment of the information as normal goods and services, which are impacted by the forces of demand and supply. For this reason, the preparation and utilization of the accounting information would yield optimal output. For any business entity, they will offer financial information that would address the needs of the economic demand (Flegm 2004, p.56). In addition, business entities would be required to provide the expected financial information without the imposition of any regulation.

For instance, when companies would be required to offer the shares in order to be listed, they would be necessitated to offer the required financial information to attract investors. On the other hand, the implementation of the pro-regulatory approach involves the incorporation of regulation that would necessitate all business entities, especially companies so as to offer their accounting information freely to the public. In this regard, the accounting information is considered to be a public need, and for that reason, companies have to set some finances for the preparation and presentation of the accounting information.

After the accounting information have been produced, it is essential to realize that they become free and everyone can access them. Through this practice, there is a conception that