Australian Accounting Philosophies and Theories Essay

Australian Accounting Philosophies and Theories - Essay ExampleClearly, the Within the discourse of CORPORATE RESPONSIBILITY, various concepts are used to distil the rights and obligations that corporations have, to those they work with and work for corporate responsibility had been accomplished through the compliance of release no. 1 and accounting pronouncements by the global Accounting Standards Board. SAC no 1 states that general purpose financial reports like the balance sheet, income statement and statement of cash flows should be prepared when there are users. The Australian corporation is responsible for the proper periodic recording of daily business operations and presenting them in audited general purpose financial reports in accordance with the International Accounting Standards Board. The IASB accounting pronouncements had superseded the Australian SAC 1 to 5 in the year 2005 yet. These IASB authoritative pronouncements are being followed in most countries of the worl d. The IASBs principal(prenominal) purpose is to facilitate communication and understanding among the different users of the financial statements by using the same accounting procedures. The implementation of these accounting pronouncements in the audited recording of the assets, liabilities, capital, revenues, expenses and net income of all Australian corporation is in compliance with its corporate responsibility to all its stakeholders. The stakeholders include the stockholders, employees, managers, customers, suppliers, creditors, community, investors, banks, loan institutions, etc.government regulating agencies and other interested parties. The corporation must comply with government anti- air pollution laws, anti-water pollutions laws, zoning regulations and other city and state laws and regulations. Also, the government tax agencies will continuously monitor if the Australian companies give the correct amount of taxes by scrutinizing the corporations audited financial stat ements. Furthermore, the corporations board of directors will use the financial statement to determine if the companys actual performance for the whole year exceeded their pre-planned goals and objectives. In addition, the other stakeholders will use