ACT301 Accounting Theory and contemporary issues: Public Interest

ACT301 Accounting Theory and contemporary issues: Public Interest

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ACT301 Accounting Theory and contemporary issues

Questions:

Assignment Information :

  • This is an individual assignment.  
  • Please make sure that names and ID numbers of all group members are stated on the cover sheet of your submission.
  • This Assignment is worth 15% of the total assessment for this unit. This assignment will be marked out of 35 and scaled down to being out of 15.
  • Assignment has Two Questions.
  • Weight: Question 1: 15 marks and Question 2: 20 marks.
  • Word Limit: Word limit is kept open for both questions.  

QUESTION 1 (5 + 5 + 5 = 15 marks)

Let us assume that the government has become concerned that existing disclosure regulation tends to fixate on the financial performance of organisation but fails to address other aspects of corporate performance.

Including failure to provide information about corporate social and environmental impacts as well as about various initiatives and investments an organisation has undertaken to improve its social and environmental performance.

As such, the government has decided to introduce legislation that will require business corporations to provide information about the social and environmental impacts of their operations, as well as the social and environmental initiatives undertaken by the corporations. 

Required:

You are required to answer at your own of the following questions:

  • (a) Explain from a ’Public Interest Theory Perspective’ the rationale for the government introducing the legislation and how the government will assess whether any proposed legislation should be introduced. (5 Marks)
  • (b) Predict from a ‘Capture Theory Perspective’ the type of constituents that will benefit in the long run from any social and environmental disclosure legislation. (5 Marks)
  • (c) Predict from an ‘Economic Interest Group Perspective’ whether any potential legislation to be introduced will lead to an increase in the accountability of corporations in relation to their social and environmental performance despite any implications that this increased corporate accountability might have for the financial success of large but heavily polluting organisations. (5 Marks)

QUESTION 2 (5 + 10 = 20 marks)

We have discussed various theories in the lecturers. By concept of the theories, you have learnt answer the following questions in your own words.

  • (a) Explain the concept of “Accountability”. (5 Marks)  
  • (b) What aspects of corporate performance do you believe that a business organisation should be accountable for? (15 marks)

ACT301 Accounting Theory and contemporary issues

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