Required

Identify and explore the tensions that exist between the applications of international financial reporting standards designed to improve financial reporting quality and earnings management designed to avoid corporation tax liabilities.

Set your considerations against the drivers for and nature of corporate social responsibility.

Articulate your conclusions in the context of advice you would offer to a corporation's senior management team interested in satisfying the needs of typical key stakeholders.In so doing draw upon references from relevant theories and, where appropriate, illuminate your analysis, argument(s) and justification by using examples and illustrations.

You should identify typical key stakeholders and their interests, and assess the implications of the tensions you identify and explore for them.

CONTEXT

Each of the four core readingsin Topic 4 in Theme 2 articulate a number of the potential benefits -at least theoretical benefits -of IFRS in general and of harmonization of IFRS specifically, whilst identifying some associated issues. The potential benefits include improvements in the rigour and quality of financial reporting, not least in the determination of earnings in a financial period. Other research literature reflects the benefits and challenges

Each of the two core readingsin Topic 3 in Theme 1 focus on tax avoidance by corporations. and the implications for such corporations spousing and declaring adherence to corporate socially responsibilityImplicitly major contributions to achieving tax avoidance are actions by senior managers to report earnings at lower levels than they might be without such earnings management.

The essence of the two paragraphs immediately above could be viewed as engendering a dichotomy: IFRS should improve financial reportingqualityand yet despite the presence of a number of standards andtheirapplications,it is still possible for some corporations to undertake earningsmanagement with the deliberate intention of reducing tax liabilities. Exposing themselves to accusations of playing games within the corporate social responsibility arena.