Different accounting theories will provide alternative explanations about why an entity might decide to report social and environmental information. Positive accounting theory tries to make good prediction of real world events and translate them to accounting transactions, while normative theories tend to recommend what should be done. Positive theories try to explain and predict actions such as which accounting policies firms will choose and how firms will react to newly proposed accounting standards
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Corporate Social Responsibility and Accounting - A Literature Review Master thesis in Financial Accounting Fall semester 2012 Supervisor: Kristina Jonäll Author: Ulla-Christel Götherström Abstract Master Thesis in Financial Accounting, School of Business, Economics and Law, University of Gothenburg, fall semester 2012 Author: Ulla-Christel Götherström Supervisor: Kristina Jonäll Title: Corporate Social Responsibility and Accounting - A literature review. Background and problem: Corporate
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at Accounting Biovail INTRODUCTION Operating within a complex and highly competitive pharmaceutical industry, the challenges confronting Biovail are intensifying as regulatory agencies release formal allegations of misconduct against four corporate executives and as outstanding lawsuits, widespread scrutiny, and a history of questionable accounting practices are unavoidably coming to a head. Responsible for overcoming its damaged reputation and for moving the company forward, it is imperative that
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not be an issue this year. The CAO suggests that they be limited to the amount of capital expenditures in 2008, and for no reason can they be any higher. Although there is concern by Irv Milton on the possible negative effects this could bring—the CAO, Ann Plotkin convinces Milton it is the best policy to take on given the situation at hand and that it will help to ensure that the company will still qualify for the desired $20 million loan in the near future. 10-Step Ethical
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The Collapse of Enron Assessment Task A brief introduction outlining the key facts in the selected case On December 2nd 2001 the largest bankruptcy in US history was filed by energy trader, Enron Corporation. Once regarded as one of the fasted growing, innovative and best managed businesses in the United States, the collapse of the energy giant highlighted a series of corrupt and criminal activities that were, according to several investigations, rife throughout Enron’s operations. Enron Corporation
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Theory: Ethical Bottom Line Introduction The Ethical Bottom Line Theory is developed on the bases of the case study and CSR theories and the traditional concept of accounting system. In traditional business accounting and common usage, the "bottom line” refers to either the “profit” or “loss”, which is usually recorded at the very bottom line on a statement of revenue and expenses. The Triple Bottom Line was coined by Elkington (1994) to introduce the full cost accounting method.
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Case 2-8 Juggyfroot This case shows the auditors resisting pressure from the client to change to a non justified accounting treatment. The stakeholders of this case are the bank, the shareholders, creditors, suppliers, employees, and officers of the firm. The stakeholders expect non-misleading financial statements. Deziloo has an obligation to perform the audit with integrity, objectivity, and due professional care. From a rights perspective, it is not right to mislead the investors by making
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Issues of the case study 1) Internal control In this case study the first issues is about lack of internal control in the organization. Internal control is defined as a process affected by an organization’s structure, work and authority flows, people and management information systems, designed to help the organization to achieve specific goals or objective. In this case study, we found that the internal control is very low. It is because Mohamed Salem El-hadad, internal auditor had discovered
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Ethics in Accounting Tonya Thompson Carlene Wilson Immediate Accounting ACC305 November 17, 2010 What is Ethics? Business ethics are moral values and principles that determine our conduct in the business world. Commercial ethics standards activities are needed; whether you have a single client or several business organizations. Ethics Standards can be applied to all aspects of business, from generation of an idea the sell of the particular
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that budgets and performance reports have is to help Guillermo make choices. These choices can lead to whether Guillermo can afford or need the added machinery that he is now considering. Guillermo’s has to ensure that his accounting decisions ensure he does not end up in a ethical dilemma. How could Guillermo use budgets and performance reports in his decision-making process? Budget: A budget can be a great tool for Guillermo to use. With this budget Guillermo can identify all of his
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