Accounting Theory Essay Example | Topics and Well Written Essays - 2250 words

Accounting Theory - Essay ExampleThe business relationship theory that would be relevant in relation to this article would be the slaying of business relationship application that the fellowship might use so as to revive from the crisis. In other words, it can be said that the positive accounting theory would relate well to this article. Another issue in reference to accounting theory that would also be relevant is the stakeholder theory. Both these theories would assist in focusing on the problem of the company and facilitate to develop measures that would help the company recover from the current crisis.According to Freeman & Et. Al. (2010), stakeholders tend to sidestep the disclosure of a companys pecuniary information to a significant extent. It was also claimed that the theory of stakeholders influenced the moment with regard to the declarations pertaining to the earnings. Evidence was found regarding the matter that managers try and manipulate the insights of their partic ular shareholders pertaining to the performance of the firm. Thus, it can be said that a company should implement and alter this theory in a way which would help the company to regularise a decision regarding creative accounting without being manipulated. In this case, the Suncorp Company underwent a dip in its annual profits but it gloss over maintained to hit a high of four-week in its share prices. It was fundamental because the company maintained a fair practice regarding its management operations and in disclosing its financial information.... Thus, it can be said that a company should implement and alter this theory in a way which would help the company to determine a decision regarding creative accounting without being manipulated (Freeman & Et. Al., 2010). In this case, the Suncorp Company underwent a dip in its annual profits but it still maintained to hit a high of four-week in its share prices. It was fundamentally because the company maintained a fair practice regardi ng its management operations and in disclosing its financial information. However, it was studied that reporting was not the sole phenomenon in accounting related to stakeholder manipulation. Stakeholder groups even strongly manipulated the standards that were to be laid down in respect to global accounting. It was also said that though the groups did not enjoy complete authority in ascertaining the standards but few stakeholders yet displayed a higher degree of manipulating skill (Freeman & Et. Al., 2010). In case of positive theory of accounting, justification is given regarding the operations of the business with no recommendations as to how the operations need to be (Schroeder & Et. Al., 2010). arbitrary accounting theory establishes the opportunistic way in which a business operates so as to increase the wealth of the individuals concerned with the business. This theory assists in adopting the accounting procedures. Positive accounting theory is known to forecast that organi zations require look for methods that would help to support the owners interest with the managers interest of a specific organization. This would require the preparation of proper financial statements as well as monitor and audit them. Thus, positive accounting theory would facilitate in identifying the proper accounting