Accounting Theory Research Assignment Table of Contents Table of Contents 2 Article One 3 Summary (Part A) 3 Accounting Theory (Part B) 3 Analysis (Part C) 4 Conclusion 5 Article Two 5 Summary (Part A) 5 Accounting Theory (Part B) 6 Analysis (Part C) 6 Conclusion 7 Article Three 8 Summary (Part A) 8 Accounting Theory (Part B) 8 Analysis (Part C) 10 Conclusion 11 References 12 Article One Summary (Part A) The name of the article is ‘Latest effort at transparency just muddies water’ which was published in the year 2012 in The Australian. The article is written by Carolyn Pugsley and Alexandra Module. The main objective of the article is to state the reforms which are adopted by the federal government of Australia in order to disclose the remunerations of seniors executives of companies.
This reform has been adopted by the Australian government with the intention of facilitating better transparency for shareholders with respect to the remuneration structures of senior executives. Moreover, this reform will facilitate management of companies with minimum regulatory pressure (Pugsley & Module, 2012). Accounting Theory (Part B) The appropriate theory for this article will be ‘Legitimacy Theory’. This theory states that the remuneration policy of an organisation is conducted in a legitimated manner in accordance with it the board of directors (BOD) of the organisation is required to justify that the remuneration policy adopted by them are according to the company law and Accounting Standards of Australia.
Moreover, the remuneration of BOD of organisations should be justified to the shareholders as well as society. The remuneration policy of senior executives is required to be revealed in order to ascertain that remunerations are provided in keeping with best practices under the code of corporate governance (AFAANZ, 2010). Analysis (Part C) The legitimacy theory signifies that the remuneration policy adopted by companies is in adherence with rules as well as regulations of the government.
This theory also states that the financial and annual reports which are prepared by companies are in accordance with accounting standards and company law. In this similar context, the article depicts that the remuneration policy of senior executives will aid in determining that the remunerations as well as rewards which are acquired by senior executives are according to accounting standards. The theory signifies that the remuneration of senior executives should be revealed in an appropriate manner in annual reports with the motive of depicting the performance of companies to stakeholders.
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