Australian Accounting Philosophies and Theories Essay

Australian Accounting Philosophies and Theories - Essay Example Clearly, the â€Å"Within the discourse of CORPORATE RESPONSIBILITY, various concepts are used to express the rights and obligations that corporations have, to those they work with and work for† corporate responsibility had been accomplished through the compliance of SAC no. 1 and accounting pronouncements by the International 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 The IASB accounting pronouncements had superseded the Australian SAC 1 to 5 in the year 2005 yet.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 world. The IASB’s main purpose is to facilita te 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 paid the correct amount of taxes by scrutinizing the corporations’ audited financial statements. Furthermore, the corporations’ board of directors will use the financial statement to determine if the company’s actual performance for the entire year exceeded their pre-planned goals and objectives. In addition, the other stakeholders will use