Advanced Accounting Theory and Practice-Corporate social Coursework

Advanced Accounting Theory and Practice-Corporate social responsibilityCSRtheories - Coursework Example Starbuck engages in CSR due to its continuing commitment to help them contribute to economic development by being responsible to their respective stakeholders (Hancock, 2005, 12). The stakeholder theory maintains that a company should adopt policies that aim at satisfying numerous stakeholders because they are able to affect or are affected by the achievement of the company’s objectives. This theory regards the meaning of good management and how each individual can create value for each other. Starbuck’s involvement in CSR will help in the development of real opportunities for growth. By committing a responsible investment on the sector of the economy, the company is enhancing the social welfare of their stakeholders thereby resulting to economic growth thus enhancing the living standards of the stakeholders (Mullerat & Brennan, 2011, 89). According to integrative theories, a company should engage in CRS in order to integrate demand and concerns by their stakeholders and society because they depend on the society as well as the stakeholders for existence, continuity and growth. A CSR program will help Starbuck in recruiting and retaining employees because potential recruits the competitive graduate student market especially, often look at CSR policies of a company. CSR, therefore, delivers a much more positive perception of Starbuck among its workforce, particularly when they are involved through payroll giving fundraising or community volunteering activities (Hancock, 2005, 15). A company should take into consideration the social or stakeholder demand and integrate them in such a manner that they operate according to social norms and values. This is clearly spelt out by legitimacy theory. The theory states that a firm should operate within rules, norms and beliefs of their respective societies, and this is the reason why Starbuck has decided to pay tax on their British sales which they have been avoiding. They have received a legitimacy threat by

International Accounting Perspectives Coursework

International Accounting Perspectives - Coursework Example Being developed after an international consultation, international financial reporting standards are made after a due process. The standards are made through a process that consists of six stages. These includes setting the agenda, planning the project, developing and coming up with the discussion paper, developing and publishing the exposure draft, developing and publishing the standard and after the standard is issued. One of the major features of international financial standard includes fair presentation and complying with IFRS. This implies that all the transactions must be represented in a faithful manner. The income, expenses, liabilities and assets must be represented as outlined by the IFRS framework. The second feature of International Financial Reporting is that it ensures the principle of going on concern. This implies that financial statements must treat a business as a going on concern unless the owners want to cease trading or liquidate the company. Other key features of International Financial Reporting include offsetting, frequency of reporting, accrual basis of accounting, materiality, consistency of presentation and comparative information. One of the major goals of International Financial Reporting Standards is to provide guidance for the preparation of financial statement instead of setting rules that an industry is supposed to follow while it is reporting its financial position. It is worth to note that by use of International Financial Reporting Standards especially by firms operating globally, it is possible to emulate a reporting language that can be easily understood by auditors and investors. With more than 100 countries requiring all the public companies to apply the IFRS, the accounting policies globally will greatly improve by 2015. International Accounting Standards Board (IASB) was formed in March 2001 in United States as a non profit firm. During the establishment of the organization, the purpose was