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Stakeholder Theory: Impact And Prospects

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Question: Mr. Howe, the junior partner of the CPA firm Dewey, Cheatem & Howe has asked you to help him understand Stakeholder theory. Required: Write a ≤ 1½ page memo that summarises how Stakeholder Theory has influenced Positive Accounting Theory and what implications that influence has for GPFR.   Answer: As a member of my company you, Dewey, Cheatem & Howe, asked me to comment on that what is the stakeholder theory and how it has influenced positive accounting theory and its impact on the GPFR. It is my duty that Dewey, Cheatem & Howe should understand the importance of stakeholder of a company and the method. Stakeholder approach looks at the relationship between an organization and others in overall business environment. It also helps to provide about the impact on the Association impact and how the organisation conducts its activities. The common link between various theoretical perspectives about stakeholders is stakeholder. Positive accounting theory is influenced by stakeholder because decision making includes various interactions that provide critical influence on firms, and an appropriate analytical approach has to be taken by the authority to enhance decision making process of a particular report. There are some different strategies and decision making process is adopted by the firms due to diversified people are involves and they are from different background and combination of whole system helps to build a positive relationship between the individual as associated with the particular firm. The management department plays a significant role in the development of various critical strategies and approaches from different perspectives to synchronize both positive and normative considerations into their decision-making. General Purpose Financial Reports intended to provide information to meet the demands of external users who are not able to recur the preparation of the special report to meet their particular information needs. The practical implication of the theory considers the prevailing debate over optimal accounting valuation method. Stakeholder theory and positive accounting theory provide critical impact on the general theory of accounting. The historical cost and fair value measurement was a difficult task, and it is executed through a standardised system invented from the primary theory. In this particular case, dichotomies in accounting, such as between the relevance and accountability are substantially reconcilable. The development
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