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ACCT20074 Contemporary Accounting Theory

tag 1 Download 20 Pages / 4,815 Words tag 07-07-2021

Question:

The social contract in accounting

The aim of this assignment is to give you practice in being an accounting theorist, to take you beyond the textbook and start you on your way to being a deep thinker about the profession you will be entering.

The true and fair view (TFV) principle that you researched in Assessment Item 1 may also represent a social contract between the accounting profession and the business community. This would provide an alternative view to regulatory capture theory. In other words, the accounting profession doesn't capture the regulators for any sense of power, but to support the social contract.

The social contract is an idea that informs so much of accounting theory, yet it is given such little attention. If the social contract underscores one or more of the systems theories presented in Modules 7 & 8, then it has implications across a number of areas of accounting theory, not least in the area of environmental and sustainability reporting (Module 8). This is your opportunity to explore these implications for yourself.

Your choice of topic:

You may choose to do one of the following topics, or both. In either case, make sure you clearly indicate what you are doing by saying so in your introduction and by the use of clear headings in your report.

The topics are:

Building on the literature review from Assessment Item 1, discuss whether or not the TFV represents a social contract between the accounting profession. Support your position with convincing arguments from the academic literature.

Explain the relevance and application of the social contract to Legitimacy Theory in accounting.
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