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Stigler’s ‘private interest theory’ proposes that regulatory bodies (including accounting standard setters) are made up of individuals who are self-interested, and these individuals will introduce regulation that best serves their own self-interest. If regulators acted in accordance with the predictions provided by private interest theory of regulation, what is the likely of the introduction of regulation aimed at reducing the problems associated with climate change, particularly if business corporations opposed such regulations?

Stigler, G. J. 1971, the politicization of accounting, Journal of Accountancy, 146(5), pp. 65-72

Required:

a) Compare the view espoused through the economist Milton Friedman about the social duties of business with the views express by Stigler above.

b) Discuss the standards which are inherent in Global Reporting Initiative (GRI).

c) Select a company listed on the ASX and discusses how the company has disclosed Corporate Social Responsible (CSR) issues. Refer to instruction 2 below.

d) Assess your company performance in relation to GRI standards and comment on Stigler’s theory.

Instructions:

1) The research essay is to be conducted in groups of two. Students don’t have the option to extend or decrease the size of the group.

2) Each group must select a different company listed on the ASX. Discuss you chosen company with your lecturer or tutor to make sure there is no duplication.

3) Assignments should not exceed the word counts indicated.

4) Your assignment must include an abstract or synopsis, introduction, essay body that clearly addresses the problem areas, a conclusion and a properly referenced (refer to the research essay marking guide for further guidance).

5) Evidence of extensive research beyond the prescribed text is required. Ensure these are referenced. Refer to the University of Ballarat’s policy on plagiarism.

6) NO extensions will be granted unless supported by suitable documentation prior to the due date.

7) The group assignment will be due in week 10 of the semester; your lecturer will recommend you of the time and date. Assignments which are submitted late will be penalized at the rate of 10% per day. The lecturer, in the evaluation of the group submission and each individual’s contribution, might require any or all of the members of the group to discuss different aspects of the assignment.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M917

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