Current Issues in Accounting and Corporate Governance

Question: Discuss about the Current Issues in Accounting and Corporate Governance. Answer: Introduction: The stakeholder theory refers to a theory of capitalism that emphasizes the interconnected associations between the business and its stakeholders that include the consumers, suppliers, employees, investors, societies as well as others who hold a stake in the organization. However, the legitimacy theory indicates towards different explanations for different corporate environmental disclosures. Again, the institutional theory refers to different aspects of the social framework that takes into consideration different procedures, schemes, norms and principles that become established as authoritative strategies for the social behaviour. It can be opined that the contingency theories of the management accounting are an improved theory founded in the different ideas of the organizational control as well as effectiveness. Again, the theory of agency refers to the development of relationship between the theory of agency and the existing business practices of accounting theory. The use of the IDEALS framework that stands for (IDEA, DEVELOPMENT, EXPLORATION, and LONG-TERM STUDY) can help in analysing the present case study on the breach of corporate obligations of Newcrest Mining. The application of the present IDEAL procedure requires the use of the databases, news reports and other evidences that can help in assessment of the present case on Newcrest Mining. As mentioned in the case study, Newcrest Mining, the biggest gold producer has finally admitted to the Nations Securities Investments Commission as regards the violation of the company in meeting its continuous disclosures on two different occasions. Therefore, the legitimacy theory can illustrate the behaviour of the Newcrest that has not consciously admitted regarding the breach of corporate obligations intentionally. In addition to this, the biggest gold producer faced a fine for breaching the continuous disclosure. Therefore, this reflects the lack of the effectiveness of the organization and control.The contingency theory of accounting can explain this lack of the organization control and efficiency. Therefore, both the contingency theory and the legitimacy theory can be used for explaining different circumstances at New Crest.