ACT301 Accounting Theory Assignment Sample

Here’s the best sample of ACT301 Accounting Theory Assignment, written by the expert. 

Part A:

1. Explain from the “public interest theory perspective” the rationale for the government introducing the legislation and how the government will ultimately assess whether any proposed legislation actually be introduced

Public interest theory regulation is introduced to get a proper solution to the economically not developed market condition. The theory states examine the firm’s market power to imperfectly competitive in the targeted markets and define the methods to control the same. A regulation policy assures the firms to make goods and services available in the decided market. These products are not possible to be launched in the market by companies that are unregulated (Deegan, & Unerman, 2011).

A government from the public interest theory perspective might implement legislation in case they are assured that project benefit as communicated by the company excess the total projected expenses. The costs and other benefits are subjective features and through the legislation, the benefits and challenges with the project execution are determined. Parties involved in the project execution, the benefits available, and others important features are included in the legislation process.

Policies are regularized to state how the externality factors that contend in the project execution affect the works and the benefits determined by the government. Pollution is one of the types of the externalities that are ignored by the unregulated firms, while designing the business developmental plan. Decision-making process for the unregulated firms becomes quite complicated for the unregulated firms as there are no property rights executed by the members (Hantke-Domas, 2003).

In such a case, the costs and the associated benefits affect the quality of the decision-making process and the steps that are proposed to be implemented by the management. There are high possibilities that the forms might literally fail to allocate the reserves and make the best use of the funds that are allocated for the conduct of the business works.

A close monitoring and auditing process is conducted by the government to ensure that the legislation requirements are followed by the unregulated firms. The audit presents the information about how the works were conducted, steps followed to control the failure of the implementation of the system, and in implementing the changes. Any failure to apply the system allows the company to make the necessary decisions about the works to be conducted by the unregulated firms.

1. predict from a “capture theory perspective” the types of constituents that will benefit in the long-run from any social and environmental disclosure legislation

The capture theory states that the regulated party is authorized to ultimately make the necessary changes while making the decisions. Regulated parties would capture the need to analyze the regulatory process to ensure that the subsequent regulations are best followed by the companies or the parties involved in the contract. The legislative rules need the parties to implement the subsequent regulation policies that would be in the interest of the parties and the companies (Smyth, Söderber, 2010).

The companies need to follow the disclosure rules to state how the business activities were being conducted by the leaders. These are closely associated with the social and environmental impact that are usually associated with the chemical, mining, timber, and transport industries. The particular industry is associated with the actions that are supposed to be taken in order to disclose the complete information as needed by the government authorities. Impacts of the actions that are decided by the management in accordance to the legislative rules are introduced by the government.

The government has introduced the triple bottom line factor that enables the leaders to analyze the social and environmental factors that helps in regulating the issues faced while executing the policies and strategies.

The aspects that are worked upon by the company and the regulatory body includes –

1. economic factors (Hamilton, 2013).
2. environmental measures
3. social measures

These aspects are quite relevantly used to examine how the strategic changes within the company can be introduced to control the social and environmental factors. By analyzing these factors it is possible to determine the changes that would be introduced through the regulatory policies that would benefit the company and the community. The companies that are not following these policies could be forced by the management to strictly follow the legislative rules as it would benefit the company and the community.

The legislative requirements allow the users to take care of the environmental and social aspects that are quite important to reduce the challenges involved with the production works. Through the regulative policies and legislative policies, it is possible for implementing the changes in the production works as it would help in analyzing the associated challenges and in discussing the type of the works that are being taken-up by the management (Roger, 2008).

1.  Predict from “economic interest group perspective” whether any potential legislation to be introduced will lead to an increase in the accountability of corporations in relations o their social and environmental performance despite any implications that this increased corporate accountability might have for the financial success of large but heavily polluting organizations

The economic interest group theory forms an integral part of the regulation policies that intents to protect the environment, people, and the company from any unexpected challenges. This theory concentrate in regulating the proposals that needs to be followed by the company and the people, and this includes the regulators and politicians involved in the project execution. The self-interest factors are examined as it helps in developing the better policies and in introducing the changes in the strategies to control the pollution and production wastages that causes affects the business conduct (Lori, 2007).

Through the regulation policies, the regulators would be aware about the methods that could be introduced to handle the challenges involved in the conduct of the production works. In the public interest theory, the associated challenges faced by the companies working in an instructed atmosphere. The political aspects and other factors are involved in extending the financial support that is needed for the regulator to be followed in an implementing the changes needed to control the issues related to the social and the environmental factors. A potential control process is introduced to improve the strength of the legislative policies and to control the negative impact that mainly arises due to the work execution conducted by large sized companies (Rudbeck, 2012).

The government has introduced the policy to analyze how the companies have adopted and implemented the corporate social strategy factors. Government have exclusively developed the strategies and introduced the necessary measures that assists in getting the relevant details about the social and economic change factors that are introduced for the welfare of the people, community, and the company. The government has also introduced the legislative procedure that assists in evaluating the responsibilities that are assigned to the companies, and to examine how the strategic changes are implemented at the operational level. The interest of the people and the community is closely examined and the relevant changes are introduced to deal with the issues that affect the economic and social factors.

By implementing these policies the company improves the productivity, quality of customer care services, and profit margin. These are quite an important factor that assists in handling the challenges that are associated with the social and economic factors. These changes allow the company to introduce the changes that will improve the goodwill in the long run.

Part B

1. what does accountability mean

corporate accountability means the process adopted by the companies to increase the performances in the financial aspects (like earning profit, providing better returns to the stakeholders, and others) and non-financial aspects that are associated with the social responsibility, environmental, and sustainability performances. Corporate accountability for a management espouses that the financial performances and its improvements strategies shouldn’t be the only goal and stakeholders are not the only people whose interest needs to be considered by the company (Monibot,2011).

A company is directly and indirectly responsible towards the members like the government agencies, external stakeholders, clients and the environment. The accountability concept states that the business houses needs to be held responsible for the actions introduced for the welfare of the organization. Government can regulate the operational part of the works by introducing a specific legislation that governs the works done by the company. This legislation is passed in the best interest of the people and the environment, and these measures taken by the company are analyzed and reanalyzed.

Companies are motivated to take up certain campaigns that are meant to benefit the people and the environment. Initiatives taken for the public health improvement, environment safety, and adopting sustainable business strategies are some of the necessary steps that are conducted by the company. Labour law and the social justice aspects like the employee exploitation and stop bribery process and corruption are some of the accountable measures taken by the company. Periodic campaigns are undertaken by the management so that the high quality services are provided to the clienyts and the quality of the internal works are maintained by the management (Farrington et al., 2017).

Companies are entrusted with the task of doing ethical business activities that would make it more reasonable towards the community and the environment. These details are included in the annual corporate accountable reports that are prepared and shared with the internal and external members. There is no direct process that is used for measuring the corporate accountability process, but it is necessary to determine the process that would be followed for the execution of the tasks and securing the company from following any unethical means to conduct the business.

In the similar manner a company is responsible for handling different challenging businesses that includes securing the lives of the people working in the manufacturing unit, providing the better resources that would be used for handling the business tasks, and others. These are quite an important factor that assists in presenting the report on the accountability factors that were adopted and implemented by the company (McWilliams et al., 2000).

1. What aspects of corporate performance do you believe that a business organization should be accountable for

The corporate performances undertaken by a company depends upon the business activities that are being conducted by the management. Environmental factors is one of the aspects that is needed to be closely evaluated and improved by a company, as it is needed by the law as well. However there are no direct means to measure the effectiveness of the system but the tasks performed by the company and the benefits to the stakeholders and the clients are included in the analyses part. In the environmental issue, the company needs to plan for the wastage management, handling the labor law, and in implementing the security measures like ISO standards and others for the conduct of the operational works (Kaschny, 2018).

The provider to introduce the security measures are quite complex and needs the management to adopt the better process to improve the business activities. Corporate performances are not enforced on a company, built the management is accountable for the works that is being conducted by the leaders. In the social benefit factors, the strategies that are adopted to benefit the community members and the changes adopted are examined. A company is expected to work for the welfare of the company and strictly follow the terms and conditions that are included in the analysis part of the report preparation.

The social and the environmental factors need the company to include or involve the stakeholders as it would improve the strategic goal achievement and the task execution process. By providing the service related information, the management ensures to proactively engage the stakeholders and benefit the company and the clients. This forms an important part of the strategic management process where the manager decide the type of changes that can be introduced for the improvement of the services and in establishing a positive relationship with the community, people, and the stakeholders.

The changes in the business conduct are introduced in accordance to the governance system that also examines the process that will be followed for the conduct of the business works. A company is accountable for engaging the stakeholder in making critical corporate governance decision. This assists in accomplishing the business goals of providing the better services and management to the staffs, people and management. In the accountable process, the company will have to analyst the type of changes that would be needed for improving the operational works and in sharing the relevant information that would benefit the external and internal stakeholders. The strategic changes that are introduced by the company to improve the environmental factors and others are the responsibility of the company. Any changes that are introduced by the management make them accountable for the outcome (Cheng et al., 2013).

References

Cheng, Ing-Haw; Hong, Harrison; Shue, Kelly (2013). “Do Managers Do Good with Other People’s Money?”. NBER Working Paper No. 19432.

Deegan, C., & Unerman, J. (2011). Financial Accounting Theory. Maidenhead: McGraw-Hill Education

Farrington, T., Curran, R., Gori, K., & Kevin D, Queenan, C. Jane (2017). “Corporate social responsibility: reviewed, rated, revised”. International Journal of Contemporary Hospitality Management. 29 (1): 30–47

Hamilton, A., (2013). Small is beautiful, at least in high-income democracies: the distribution of policy-making responsibility, electoral accountability, and incentives for rent extraction 

Hantke-Domas, M., (2003). The Public Interest Theory of Regulation: Non-Existence or Misinterpretation?. European Journal of Law and Economics. 15 (2): 165–194. doi:10.1023/a:1021814416688

Kaschny, Martin (2018). Innovation and Transformation. Germany: Springer Verlag. pp. 297, 298.

Lori, A., (2007). “Why are some firms more profitable than others?” 

McWilliams, A.,& Siegel, D., (2000). “Corporate social responsibility and financial performance: correlation or misspecification?”. Strategic Management Journal. 21(5): 603–609

Monibot, G., (2011). The Captive State: The Corporate Take-Over of Britain. London: Pan

Roger A. (2008). Arnold, Economics Google Books. Thomson South-Western, 8th edition (2008) p. 497. ISBN 978-0-324-53801-4.

Rudbeck, J. (2012). Popular sovereignty and the historical origin of the social movement. Theor Soc. 41 (6): 581–601.

Smyth, R., Söderberg, M., (2010). Public interest versus regulatory capture in the Swedish electricity market. Journal of Regulatory Economics. 38 (3): 292–312. doi:10.1007/s11149-010-9129-9

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