1. “Accounting has been created and developed to accomplish various desired objectives and, therefore, it is not based on fundamental laws or absolute precepts”. The articles explains about the application of the accounting concepts and the use of the same in the accounting framework of the company. The accounting statement and the financial reports presented should well account for all the components of the financial statements and should be presented in a true and a fair view (Catlett 1960). The necessity for such fair and true representation of financial statement is necessary as the end users of the financial statement that is the stakeholders of the company should make a proper investment related decisions. The accounting principles should be such so that it should reflect current economic and accounting scenario of an organisation. It is very important for the organisation to maintain and to adhere to accounting principle that reflect economic reality so that the stakeholders of the company get a true and a fair view (Carter and Warren 2018). The accounting principle and the recording of the financial statements should be such so that the stakeholders get an option for the comparability feature in the accounting principles and the changes could be easily noted down. The accounting process and the principle should be such that it is self-evolution in nature and the changes and adaptation of the same should reflect key material information about the entity and under the business environment under, which the entity performs its business operations. The accounting process may be solved and overcome through a lot of trial and error process but the same should also guide the company that the key information’s about the business operations of the company are well reflected in the accounting principles of the company. The accounting process should be retrospective i.e., looking at past events or the accounting judgement and about the necessary key accounting changes so that the current economic reality is reflected. Thus it is key for the companies and entities to constantly upgrade with the key accounting policy so that the economic reality is reflected.
2. Brazil one of the members of the BRICS nation where economic development and the common economic factor that will mark the success and the growth of the country. Advancement and growing technologies and usage of them in the organisation are the key factors. Responsibility towards environment and protection of the surrounding environment should be the key focus for the aviation industry (de Lima Voss, Carter and Salotti 2015). The airline industry undertakes several programmes and initiative for the protection of the environment and for checking the adverse climate change impact on the environment. The industry also focus on taking programmes and initiatives that will focus on the carbon free growth or carbon neutral growth do as to reduce the impact on climate change. There are several steps taken by the aviation industry to reduce the impact of CO2 emissions. Such as investment into technological update and research and development for reducing the same. Flying planes efficiently, usage of proper infrastructure in the ground to curb the effect of the same. There are certain corporate social responsibility, which the aviation industry should undertake for reducing the adverse effect on climatic change and should have a common set of ethical rules and guidelines for maintaining the key responsibility towards the society and the people associated with the same. There are different costs also which the companies and the organisation should undertake for accounting, recognizing of finance costs vs environmental costs, and the social costs (Araghi et al. 2014).
3. “In Communicating Reality, We Construct Reality' and the concept of the hidden power.” The quotation was used by Ruth D Hines in his article Accounting, Organisation and Society. The article reveals about the various accounting concepts and policies used by the organisation and the implication of the same. There are various accounting policy and principles under, which the working and operations of the company operates but incorporating the same depends on how the company accounts for the various components of the income statement and the balance sheet of the company (Duska, Duska and Kury 2018). The recognition of revenue and the accounting for the same was the primary focus on the art6icle given by Mr Hines where he informed about the recognition and accounting of the revenue and the right time for the recognition of the same. Revenue should be recognized in the income statement or accounts of the company when the same is realized by the company or the same has been invoiced for the customers and is in the way of transition. The article also focuses on the explanation and idea given that organisations often communicate ideas and information’s that are often considered true (Hines 1988). There are different accounting concepts and principles applied that is taken as true and fair representative by the users of the data hence the organisations should use a common form of accounting concept and the application should be applied on a common ground (Arnaboldi, Busco and Cuganesan 2017).
Araghi, Y., Kroesen, M., Molin, E. and van Wee, B., 2014. Do social norms regarding carbon offsetting affect individual preferences towards this policy? Results from a stated choice experiment. Transportation Research Part D: Transport and Environment, 26, pp.42-46.
Arnaboldi, M., Busco, C. and Cuganesan, S., 2017. Accounting, accountability, social media and big data: revolution or hype?. Accounting, Auditing & Accountability Journal, 30(4), pp.762-776.
Carter, D. and Warren, R., 2018. Accounting for indebtedness: geopolitics, technocracy and advanced financial capital. Innovation: The European Journal of Social Science Research, 31(1), pp.83-104.
Catlett, G.R., 1960. Factors that influence accounting principles. Journal of Accountancy (pre-1986), 110(000004), p.44.
de Lima Voss, B., Carter, D. and Salotti, B., 2015, November. Airline Constructions of Social and Environmental Accounting in Brazil. In A-CSEAR 2015-Proceedings of the 14th Australasian Centre on Social and Environmental Accounting Research Conference: A-CSEAR 2015 (p. 174). Academic Conferences and publishing limited.
Duska, R.F., Duska, B.S. and Kury, K.W., 2018. Accounting ethics. Wiley-Blackwell.
Hines, R.D., 1988. Financial accounting: in communicating reality, we construct reality. Accounting, organizations and society, 13(3), pp.251-261.