responsibility accounting essay

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• 1 What is responsibility accounting?
• 2 Decentralized organization
• 3 Cost variance analysis
• 4 Segment margin analysis and reporting
• 5 Evaluating investment centers
•   Return on investment (ROI)
•   Residual income (RI)
•   Economic value added (EVA)
•   Market value added (MVA)
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• 6 Transfer pricing

What is responsibility accounting?

Responsibility accounting is a system that involves identifying responsibility centers and their objectives, developing performance measurement schemes, and preparing and analyzing performance reports of the responsibility centers.

Advantages of Responsibility Accounting

1. Responsibility accounting delegates decision making to several parts of the organization. Line managers, department heads, and supervisors are entrusted with operational decisions. The top management (executives) could then focus on strategic or long-term organizational objectives.

2. It provides a guide to the evaluation of performance. It helps to establish standards which are used for comparison with actual results.

3. It promotes management by objectives and management by exception .

Management by Objectives and Management by Exception

Management by objectives is an approach in which a manager agrees on a set of goals or objectives (hence the term management by objective). The performance of the manager and his or her subordinates are evaluated based on achievement of these goals.

Management by exception is another managerial approach in which management gives attention to matters that materially deviate from established standards. For example: when a department has very high costs compared to what was budgeted, the management will focus on finding out the reason behind it and fixing the concern perhaps by cutting costs, process re-engineering, establishing new standards, etc.

Requisites of Effective Responsibility Accounting

For effective implementation of responsibility accounting, the following must be met.

1. A well-defined organizational structure. Authority and responsibility must be clearly established and understood by all levels of management.

2. Performance evaluation measures and standards must be clearly established.

3. Only items that are under the influence of the manager of the responsibility center are included in performance evaluation reports. The manager should not be evaluated based on matters that are out of his or her control.

Responsibility Centers

A responsibility center can be classified according to control over costs, revenues, and investments.

1. Cost center - A subunit of the organization that has control over cost only. It has no control over revenues and investments. Examples include: production department, maintenance department, accounting department, legal department, etc. Cost centers are evaluated using variance analysis of costs.

2. Revenue center - has control over revenue generation, but has no control over costs and investment, e.g. the sales and marketing department. Revenue centers are evaluated using variance analysis of revenues.

3. Profit center - has control over both revenues and costs. Examples include branches operating in different geographic locations. The performance of profit centers are evaluated by measuring segment income (based on controllable revenues and costs).

4. Investment center - A subunit that has control over revenues, costs, and investments (assets such as receivables, inventory, fixed assets, etc.). Since investment centers are given authority to decide over its investments, it operates like a separate entity. Examples include corporate headquarters and subsidiaries. Investment centers are evaluated using different profitability measures such as return on investment, residual income, economic value-added, and others.

Responsibility accounting involves gathering and reporting revenues and costs by responsibility centers.

A responsibility center is a subunit of a company wherein a manager has specific authority and control. Responsibility centers can be classified into: cost center, revenue center, profit center, and investment center.

More under Responsibility Accounting

• 1 What is Responsibility Accounting?
• 2 Decentralized Organization
• 3 Cost Variance Analysis
• 4 Segment Margin Analysis and Segment Reporting
• 5 Evaluating Investment Centers
• 6 Transfer Pricing

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9.3: Responsibility Accounting in Management

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Responsibility accounting

The term responsibility accounting refers to an accounting system that collects, summarizes, and reports accounting data relating to the responsibilities of individual managers. A responsibility accounting system provides information to evaluate each manager on the revenue and expense items over which that manager has primary control (authority to influence).

A responsibility accounting report contains those items controllable by the responsible manager. When both controllable and uncontrollable items are included in the report, accountants should clearly separate the categories. The identification of controllable items is a fundamental task in responsibility accounting and reporting.

To implement responsibility accounting in a company, the business entity must be organized so that responsibility is assignable to individual managers. The various company managers and their lines of authority (and the resulting levels of responsibility) should be fully defined. The organization chart below demonstrates lines of authority and responsibility that could be used as a basis for responsibility reporting.

To identify the items over which each manager has control, the lines of authority should follow a specified path. For example, in the picture above we show that a department supervisor may report to a store manager, who reports to the vice president of operations, who reports to the president. The president is ultimately responsible to stockholders or their elected representatives, the board of directors. In a sense, the president is responsible for all revenue and expense items of the company, since at the presidential level all items are controllable over some period. The president often carries the title, Chief Executive Officer (CEO) and usually delegates authority to lower level managers since one person cannot keep fully informed of the day-to-day operating details of all areas of the business.

The manager’s level in the organization also affects those items over which that manager has control. The president is usually considered a first-level manager. Managers (usually vice presidents) who report directly to the president are second-level managers. Notice on the organization chart that individuals at a specific management level are on a horizontal line across the chart. Not all managers at that level, however, necessarily have equal authority and responsibility. The degree of a manager’s authority varies from company to company.

While the president may delegate much decision-making power, some revenue and expense items remain exclusively under the president’s control. For example, in some companies, large capital (plant and equipment) expenditures may be approved only by the president. Therefore, depreciation, property taxes, and other related expenses should not be designated as a store manager’s responsibility since these costs are not primarily under that manager’s control.

The controllability criterion is crucial to the content of performance reports for each manager. For example, at the department supervisor level, perhaps only direct materials and direct labor cost control are appropriate for measuring performance. A plant manager, however, has the authority to make decisions regarding many other costs not controllable at the supervisory level, such as the salaries of department supervisors. These other costs would be included in the performance evaluation of the store manager, not the supervisor.

Watch this short video to further explain the concept of responsibility accounting and to give you a preview of the rest of the chapter.

A YouTube element has been excluded from this version of the text. You can view it online here: pb.libretexts.org/llmanagerialaccounting/?p=202

Decentralization is the dispersion of decision-making authority among individuals at lower levels of the organization. In other words, the extent of decentralization refers to the degree of control that segment managers have over the revenues, expenses, and assets of their segments. When a segment manager has control over these elements, the investment center concept can be applied to the segment. Thus, the more decentralized the decision making is in an organization, the more applicable is the investment center concept to the segments of the company. The more centralized the decision making is, the more likely responsibility centers are to be established as expense centers.

Some advantages of decentralized decision making are:

• Managing segments trains managers for high-level positions in the company. The added authority and responsibility also represent job enlargement and often increase job satisfaction and motivation.
• Top management can be more removed from day-to-day decision making at lower levels of the company and can manage by exception. When top management is not involved with routine problem solving, it can devote more time to long-range planning and to the company’s most significant problem areas.
• Decisions can be made at the point where problems arise. It is often difficult for top managers to make appropriate decisions on a timely basis when they are not intimately involved with the problem they are trying to solve.
• Since decentralization permits the use of the investment center concept, performance evaluation criteria such as ROI and residual income (to be explained later) can be used.
• Part 1 of Responsibility Accounting, Operational Performance Measures, and the Balanced Scorecard . Authored by : Maxwell Katzman . Located at : youtu.be/EsS0socI3I4. License : All Rights Reserved . License Terms : Standard YouTube License

Responsibility Accounting Essays

Responsibility legal or otherwise of an accountant, popular essay topics.

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Responsibility Accounting

Cost centres, profit centres, investment centres and revenue centres Responsibility accounting Responsibility accounting is based on identifying individual parts of a business which are the responsibility of a single manager. A responsibility centre is an individual part of a business whose manager has personal responsibility for its performance. The main responsibility centres are: • cost centre • profit centre • investment centre • revenue centre. Cost centres A cost centre is a production or service location, function, activity or item of equipment whose costs are identified and recorded.

For a paint manufacturer cost centres might be: mixing department? packaging department? administration? or selling and marketing departments. • For an accountancy firm, the cost centres might be: audit? taxation? accountancy? word processing? administration? canteen. Alternatively, they might be the various geographical locations, e. g. the London office, the Cardiff office, the Plymouth office. Revenue centre A revenue centre is a part of the organisation that earns sales revenue.

Essay Example on Responsibility Accounting

It is similar to a cost centre, but only accountable for revenues, and not costs.

Investment centres Managers of investment centres are responsible for investment decisions as well as decisions affecting costs and revenues. • Investment centre managers are therefore accountable for the performance of capital employed as well as profits (costs and revenues). • The performance of investment centres is measured in terms of the profit earned relative to the capital invested (employed). This is known as the return on capital employed (ROCE). ROCE = Profit/Capital employed. Financial accounting Financial accounting involves recording the financial transactions of an organisation and summarising them in periodic financial statements for external users who wish to analyse and interpret the financial position of the organisation.

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• The main duties of the financial accountant include: maintaining the bookkeeping system of the nominal ledger, payables control account, receivables control account and so on and to prepare financial statements as required by law and accounting standards.

Cost accounting Cost accounting is a system for recording data and producing information about costs for the products produced by an organisation and/or the services it provides. It is also used to establish costs for particular activities or responsibility centres. • Cost accounting involves a careful evaluation of the resources used within the enterprise. Management accounting has cost accounting at its essential foundation. The main differences between management accounting and cost accounting are as follows: Cost accounting is mainly concerned with establishing the historical cost of a product/service. • Management accounting is concerned with historical information but it is also forwardlooking. It is concerned with both historical and future costs of products/services. (For example, budgets and forecasts). • Management accounting is also concerned with providing nonfinancial information to managers. • Management accounting is essentially concerned with offering advice to management based upon information collected (management information). Management accounting may include involvement in planning, decision making and control. The following illustration compares management accounting with financial accounting. Management accounting Financial accounting Information mainly produced for Internal use: e. g. managers and employees External use: e. g. shareholders, creditors, lenders, banks, government. Purpose of information To aid planning, controlling and decision making To record the financial performance in a period and the financial position at the end of that period. Legal requirements

None Limited companies must produce financial accounts. Formats Management decide on the information they require and the most useful way of presenting it Format and content of financial accounts intending to give a true and fair view should follow accounting standards and company law. Nature of information Financial and nonfinancial. Mostly financial. Time period Historical and forwardlooking. Mainly an historical record. chapter 1 Information mainly produced forInternal use: e. g. managers and employees External use: e. g. shareholders, creditors, lenders, banks, government. KAPLAN

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• What Is Responsibility Accounting

Responsibility Accounting: Example

What is responsibility accounting.

Responsibility accounting is a kind of management accounting that is accountable for all the management, budgeting, and internal accounting of a company. The primary objective of this accounting is to support all the Planning, costing, and responsibility centres of a company.

The accounting generally includes the preparation of a monthly and annual budget for an individual responsibility centre. It also accounts for the cost and revenue of a company, where reports are accumulated monthly or annually and reported to the concerned manager for the feedback. Responsibility accounting mainly focuses on responsibilities centres.

For instance, if Mr X, the manager of a unit, plans the budget of his department, he is responsible for keeping the budget under control. Mr X will have all the required information about the cost of his department. In case, if the expenditure is more than the allocated budget than Mr X will try to find the error and take necessary action and measures to correct it. Mr X will be personally accountable for the performance of his unit.

Additional Reading:  Difference Between Cost Accounting and Financial Accounting

Advantages of Responsibility Accounting:

• It urges the management to acknowledge the company structure and checks who is accountable for what and fix the problems.
• It enhances attention and awareness of the managers as they have to explain the variations for which they are responsible.
• It helps to compare the achievements between the pre-planned goals and actual results.
• It creates a sense of efficiency within individual employees as their work and achievements will be reviewed.
• It guides the management to plan and structure the future expenditure and revenue of a company.
• Being a cost control tool, it creates ‘cost consciousness’ among workers.
• Individual and company goals are established and communicated in the best way.
• It improves and controls the company’s operating activities for an effective and efficient outcome.
• Simplifies the report structure and guides to prompt reporting.

The above mentioned is the concept, that is elucidated in detail about ‘What is Responsibility accounting?’ for the Commerce students. To know more, stay tuned to BYJU’S.

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Sustainability accounting and reporting: recent perspectives and an agenda for further research

Pacific Accounting Review

ISSN : 0114-0582

Article publication date: 8 October 2019

Issue publication date: 8 October 2019

Lodhia, S.K. and Sharma, U. (2019), "Sustainability accounting and reporting: recent perspectives and an agenda for further research", Pacific Accounting Review , Vol. 31 No. 3, pp. 309-312. https://doi.org/10.1108/PAR-02-2019-121

Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

The viewpoint is based on the selection of papers presented at the 2017 Australasian Centre for Social and Environmental Accounting Research hosted by the University of the South Pacific and held from 7 to 9 December 2017 at Denarau, Nadi, Fiji. The annual Australasian Centre for Social and Environmental Accounting Research Conference provides an international forum and showcases research on the social and environmental aspects of accounting theory and practice. It also fosters and supports interdisciplinary research in accounting.

Social and environmental accounting or sustainability accounting and reporting has become one of the major issues that organisations grapple with on a daily basis. Sustainability accounting is but one aspect of sustainability ( Milne et al. , 2009 ), and yet the term sustainability accounting offers so many different perspectives ( Bebbington and Gray, 2001 ; Gray, 2010 ; Mistry et al. , 2014 ; Lodhia, 2018a ; Sharma, 2013 ). This is reflected in the different names utilised for the term, such as social and environmental accounting, triple bottom line accounting, emissions accounting and carbon accounting, amongst others. Social and environmental issues are attracting more political and media attention, reflecting increased social awareness ( Deegan and Blomquist, 2006 ; Lodhia, 2018b ). These changes in societal attention to sustainability make sustainability accounting an exciting and dynamic field of research. Sustainability and sustainable development, defined by their social, economic and environmental elements are one of the significant challenges for organisations and society ( Moran et al. , 2014 ; Lodhia, 2018a ). Research has generated a sizeable body of insights into sustainability disclosure practices. However, little is known about accounting for sustainability within specific organisations, especially in relation to the trade-off between economic, social and environmental issues. Even less is known about the integration of sustainability into management control and decision-making.

This viewpoint reflects the complexity of sustainability accounting issues based on the selection of papers presented at the 2017 Australasian Centre for Social and Environmental Accounting Research conference and covers many of the approaches that can be taken. The papers reflect diverse foci and a range of countries and approaches. Papers range from stakeholder engagement, sustainability reporting, role of culture in accounting, investor response to corporate social responsibility performance, use of photographs in annual reports to depict corporate social responsibility and social and environmental accountability firms. Research approaches include case study and interviews, quantitative methods such as panel data analysis and experiments, visual content analysis and casual layered analysis. The context of investigations includes Australian councils and companies, Sri Lankan companies, New Zealand indigenous entrepreneurs and companies.

Kaur and Lodhia (2019) explore the key issues and challenges that affect the quality of stakeholder engagement processes and outcomes in relation to sustainability reporting. They use case study research to gain in-depth insights into the stakeholder engagement practices of three Australian local councils. The findings of Kaur and Lodhia (2019) suggest that the effectiveness of stakeholder engagement can be undermined by certain difficulties and challenges faced by an organisation. These include limited resources, lack of commitment from internal stakeholders, political factors, heterogeneous concerns, inadequate representation and unwillingness to engage.

Sustainability reporting in the Asian region is also a growing area of research interest. To this end, Dissanayake et al. (2019) aim to investigate the key company characteristics which influence sustainability reporting by publicly listed companies in Sri Lanka. They use panel data to analyse sustainability reporting of 84 publicly listed companies. They found that company size and usage of the GRI guidelines are found to be the most relevant company characteristics associated with sustainability reporting by listed companies in Sri Lanka. Unexpectedly, ownership and industry sector do not show strong influences on the extent of sustainability reporting over the study period (2012-2015) compared with prior periods.

Polynesian entrepreneurs also play an important role in accounting for sustainability. Yong (2019) discusses the role of accounting, accountants and the cash management processes of indigenous Maori and Pacific (collectively referred as Polynesian) entrepreneurs in New Zealand. Her paper highlights the influence of cultural values on Polynesian’s accounting decision-making processes. The paper also provides some unique insights into the interrelationships of the cultural, economic and social dynamics that sculpt Polynesians’ decision towards accounting, cash management and their accountants. In particular, the cultural values of communality, reciprocity and “gift giving” and respect for authority are important factors in shaping the Polynesians’ approach to accounting disposition and business cash management.

The effect of target and incentive consistency of unexpected positive earnings news on investors’ response to corporate social responsibility performance is also an important area. Wang (2019) examines the effect of target – and incentive – consistency of unexpected positive earnings news on investors’ use of corporate social responsibility performance in their pricing decisions. Wang’s methodology is based on experimental research. The findings reveal that target-and-incentive-consistency of unexpected positive earnings news moderates the effect of corporate social responsibility performance on investors’ pricing decisions. The findings support an unexamined theoretical underpinning for the effect of financial information on investors’ use of nonfinancial information.

Use of photographs to depict corporate social responsibility is yet another important aspect of sustainability accounting. To this end Chong et al. (2019) uncover the extent of utilisation of photographs depicting corporate social responsibility information in corporate annual reports and the possible motives for their use. Their study employed visual content analysis, based on Banks (2001) strategy of “looking through”, “looking at” and “looking behind” photographic images, to examine and analyse 4,933 photographs contained in the 2005, 2010 and 2015 annual reports of 70 companies listed on New Zealand Stock Exchange. The findings were interpreted using the impression management theoretical construct. Chong et al. (2019) findings show a marked increase in the utilisation of photographs for corporate social responsibility associated disclosures by the sample companies. Surprisingly, the quantity of photographs depicting environmental performance has declined, whereas those featuring product responsibility have increased significantly. The “messages” encoded in the photographs create idealistic images of the companies being caring and responsible corporate citizens. This suggests that companies are systematically using symbolic presentations such as photographs of children and families for rhetorical impression management. Chong et al. (2019) develop a structured approach for categorising and analysing corporate social responsibility-related photographs and contribute to the scant literature on the utilisation of photographs as a medium for corporate social responsibility information dissemination.

Holdway (2019) argues that social and environmental accountability by firms can be compromised by a lack of democracy within engagement and decision-making processes. This is particularly evident in potential conflict situations such as with unconventional gas extraction. Causal Layered Analysis was applied in a workshop setting involving participants with diverse perspectives on unconventional gas extraction. Her findings suggest that Causal Layered Analysis enables access to multiple, complex and nuanced perspectives, and facilitates a deeper understanding of participants own views, and of differing views in relation to unconventional gas extraction. Holdway (2019) emphasises that Causal Layered Analysis may well assist in moving firms and indeed civil society, closer to reaching social and environmental outcomes.

sustainable development goals and their relationship with sustainability accounting and reporting;

the influence of the integrated reporting initiative on sustainability reporting and the role of accounting and accountants in this regard;

accounting for specific environmental issues such as Carbon, Water, Waste and Biodiversity and the implications for sustainability;

accounting for specific social issues such as health and safety, product responsibility, labour, gender, diversity, human rights, equity, modern slavery and the implications for sustainability;

contaminated sites and the impact on sustainability reporting;

the role of social media, Big Data and the Internet of Things in sustainability accounting and reporting; and

sustainability accounting and reporting in developing countries, especially within the Asian and South Pacific context.

We are confident that more accounting researchers will take up the challenge to research these fascinating sustainability topics. We are also calling for collaboration (multi-disciplinary, interdisciplinary and transdisciplinary approaches) with disciplines such as biology, environmental sciences, geography and engineering to address true sustainability from new and creative perspectives.

Banks , M. ( 2001 ), Visual Methods in Social Research , Sage , London .

Bebbington , J. and Gray , R. ( 2001 ), “ An account of sustainability: failure, success and reconceptualization ”, Critical Perspectives on Accounting , Vol. 2 No. 5 , pp. 557 - 588 .

Chong , S. , Narayan , A. and Ali , I. ( 2019 ), “ Photographs depicting CSR: captured reality or creative illusion? ”, Pacific Accounting Review , available at: https://doi.org/10.1108/PAR-10-2017-0086

Deegan , C. and Blomquist , C. ( 2006 ), “ Stakeholders influence on corporate reporting: an exploration of the interaction between WWF-Australia and the Australian minerals industry ”, Accounting, Organisations and Society , Vol. 31 Nos 4/5 , pp. 343 - 372 .

Dissanayake , D. , Tilt , C. and Qian , W. ( 2019 ), “ Factors influencing sustainability reporting by Sri Lankan companies ”, Pacific Accounting Review , Vol. 31 No. 1 , pp. 84 - 109 .

Gray , R. ( 2010 ), “ Is accounting for sustainability actually accounting for sustainability and how would we know? An exploration of narratives of organisations and the planet ”, Accounting, Organisations and Society , Vol. 35 No. 1 , pp. 47 - 62 .

Holdway , M. ( 2019 ), “ Crossing disciplines: exploring the contribution of a critical futures approach to democratising community engagement with a focus on the gas industry ”, Pacific Accounting Review , Vol. 31 No. 1 , pp. 159 - 180 .

Kaur , A. and Lodhia , S. ( 2019 ), “ Key issues and challenges in stakeholder engagement in sustainability reporting: a study of Australian local councils ”, Pacific Accounting Review , Vol. 31 No. 1 , pp. 2 - 18 .

Lodhia , S. (Ed.) ( 2018a ), “ Mining and sustainable development ”, Mining and Sustainable Development: Current Issues , Routledge , London , pp. 1 - 8 .

Lodhia , S. (Ed.) ( 2018b ), “ Sustainability reporting in the mining industry: current status and future research directions ”, Mining and Sustainable Development: Current Issues , Routledge , London , pp. 159 - 175 .

Milne , M.J. , Tregidga , H. and Walton , S. ( 2009 ), “ Words not actions! the ideological role of sustainable development reporting ”, Accounting, Auditing and Accountability Journal , Vol. 22 No. 8 , pp. 1211 - 1257 .

Mistry , V. , Sharma , U. and Low , M. ( 2014 ), “ Management accountants' perceptions of their role in accounting for sustainable development: an exploratory study ”, Pacific Accounting Review , Vol. 26 Nos 1/2 , pp. 112 - 133 .

Moran , C. , Lodhia , S. , Kunz , N. and Huisingh , D. ( 2014 ), “ Sustainability in mining, minerals and energy: new processes, pathways and human interactions for a cautiously optimistic future ”, Journal of Cleaner Production , Vol. 84 , pp. 1 - 15 .

Sharma , U. ( 2013 ), “ Lessons from the global financial crisis: bringing neoclassical and Buddhist economics theories together to progress global business decision making in the 21st century ”, International Journal of Critical Accounting , Vol. 5 No. 3 , pp. 250 - 263 .

Wang , L. ( 2019 ), “ Effect of target-and-incentive-consistency of unexpected positive earnings news on investors’ responses to corporate social responsibility performance ”, Pacific Accounting Review , Vol. 31 No. 1 , pp. 63 - 83 .

Yong , S. ( 2019 ), “ Pride or prejudice: accounting and Polynesian entrepreneurs ”, Pacific Accounting Review , Vol. 31 No. 2 , pp. 182 - 207 .

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Essay Samples on Responsibility

Community responsibility: culture of care and accountability.

Community responsibility is a cornerstone of building strong, resilient, and harmonious societies. This essay delves into the significance of community responsibility, its role in fostering positive change, the benefits it brings to individuals and communities, and the ways in which individuals can actively contribute to...

• Accountability
• Responsibility

Why is Responsibility Important in Everyday Life

What is social responsibility, why is responsibility important? Social responsibility is a duty every individual has to perform to the community. A better future is what we seek for the upcoming generation and youth and the best to bring about the expected changes is when...

• Ethics in Everyday Life
• Socialization

Why Is Responsibility Important For Health

Whose responsibility is it to keep you well?  Yours or the doctors, it is our own bodies, should you not be the one to look after it? or is it simply what a doctors supposed to do? People love to pass there problems on,  but...

• Health Care
• Public Health

Various Kinds of Responsibility Cost Accounting Centres

Responsibility accounting is a bit of the display appraisal structure and an evaluation system used to measure the working outcomes of the organization.The decision rights relegated to a subunit order such as a cost center, a profit or investment center. The specific choice of rights...

• Cost Accounting

The Rights And Responsibilities Of A Citizen In America

In order to be eligible to vote for any government election, there are requirements that need to be met; being eighteen years old by election day, a citizen of the United States, meeting your state residency requirements, and being registered to vote by your state’s...

• Citizenship
• Individual Rights

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My Personal Responsibility: Taking Responsibility For Your Actions

First of all, I have a personal responsibility to know who I am, what I can do and what I want in my life. What's going to help me set my goals, know the strategies I'm going to use, and know how to fight for...

• Personal Beliefs
• Personal Growth and Development

Corporate Social Responsibility: Taking Responsibility For Actions In Businesses

Many consumers require companies to change the way they carry out their operations by becoming more transparent and taking responsibility for the issues in society. Consequently, Corporate Social Responsibility (CSR) has taken root in today's corporate world. Organizations that fail to incorporate CSR programs within...

• Corporate Social Responsibility
• Social Responsibility

Exploring Citizen's Engagement And Responsibilities Of A Citizen

This paper examines in a first place different forms of citizen’s engagement and his responsibilities toward society. In a second place, it discusses the background or the framework of these forms. What is the social role of a citizen? How valid morality could be the...

Moral Vegetarianism: Responsibility Or Necessity

Recent trends in modern eating habits have brought upon a wave of new discussions and one of them being the never seemingly ending debate of vegetarianism. The trend rose to convert our standard diets and health recommendations that mankind has known and followed for centuries...

• Eating Habits
• Vegetarianism

Age Of Consent And Age Of Responsibility

This essay plan is going to use theoretical context, with case studies, to critically assess the challenging arguments based upon the issues of reducing the age of consent from 16 to 14 in the UK. The topic of the age of consent has been very...

• Age of Responsibility

Themes of Responsibility and Respect in The Cask Of Amontillado by Edgar Allen Poe and Trifles by Susan Gaspells

The Definition of responsibility is having an obligation to do something. Responsibility to me means making sure you get stuff done the way its expected. The definition of respect is a regard for the feelings, wishes, rights, or traditions of others. What it means to...

• The Cask of Amontillado

The Appropriate Age for Driving Among Teenagers

How old is old enough to drive? Most would argue the legal driving age of sixteen appears appropriate for somebody to start taking the wheel, whereas others say that twenty-one could be a more decent age. For many teenagers obtaining their license once they turn...

• Driving Age
• Teen Driving

The Social Responsibility of the Educators and Education Department

Educators are the greatest resource in society due to the fact that every individual within society has received their first foundation/start-up to be successful in life due to them. Educators are the power tools in society, the better they are at doing their jobs the...

• Department of Education
• Role of Education

Reasons behind Kanhaiya Gulati Kanwhizz Sucess

Making a dedication isn't any sort of joke. Making a dedication is actually quite genuine issue in business and thus it ought to never be messed with. Individuals frequently don't comprehend the significance of duty, they feel it's anything but difficult to make responsibility and...

Overview of Seth Lazar Views on Self-Defence and Responsibility

In Responsibility, Risk, and Killing in Self-Defence, Seth Lazar argues that the defender is liable to defensive force if the risk of harm imposed by the attacker follows his conditions of proportionality, agent-responsibility, and necessity. In this paper, the first section will discuss Lazar’s argument...

• Self Defence

The True Conductor of the Julius Caesar Train in Shakespeare's Play

In the average person’s life, there is typically a highly influential person who drives the emotions and thought process of that said person, and often to the point where this influence and authority becomes problematic. In William Shakespeare’s The Tragedy of Julius Caesar, Brutus is...

• The Tragedy of Julius Caesar

Accountability and Responsibility Which are Key Concepts in Healthcare

This essay is going to discuss accountability and responsibility. These concepts are going to be related to scenario ward 6 (see appendix). The focus will be on the accountability and responsibility of the health care assistant (HCA) and student nurse in the scenario and will...

• Universal Health Care

Friedrich Nietzsche Psychological Concepts of Morals in Genealogy of Morals

The psychological state Friedrich Nietzsche terms as ressentiment in the Genealogy of Morals is a human condition attributed to a feeling produced when placed within a hostile environment. One which man is found powerless to alter through physical action. Those inflicted on this deprived orientation...

• Friedrich Nietzsche

Responsibilities and Failures of Civil Engineering Profession

When you become a civil engineer, you take on the responsibility to serve the public and improve the quality of life within the community. The ASCE Code of Ethics was established for civil engineers to practice ethical behavior in their profession. The ASCE Code of...

• Civil Engineering

Exploration of Themes of Regret and Responsibility in A Christmas Carol

Written in 1843 by Charles Dickens, across five staves, A Chistmas Carol depicts the mean-spirited and miserly character of Ebenezer Scrooge, who is haunted by four spirits, in an attempt to transform him into a kinder; more charitable man. On a surface level, the First...

• A Christmas Carol

The Responsibilities and Obligations of Police Officer

Abstract For my term paper I’m going to write about the responsibilities and the life of a police officer. I had a hard time deciding what I wanted to write about because there are so many different topics in the criminal justice field that interests...

• Police Officer

Immense Impact of Corporate Social Responsibility on Businesses

Introduction Corporate Social Responsibility (CSR) develop an economic of the business to contribute the achievable success in competitive advantage that build the reputation and acquire the trust of people. Providing in quickly improving that need for enhancing transparency, firm citizenship, maintain on social, ethical and...

Analyzing Responsibility in Business Management

Meaning of Responsible Management Responsible management has become very crucial in an era of growing governmental and public scrutiny of managerial practices and accountability. During the past years, a succession of instances of poor managerial practices, or even malpractices, unethical behaviour and questionable bonus and...

The Fear of Adult Responsibilities in "The Catcher in The Rye"

J.D. Salinger’s The Catcher in the Rye is a coming-of-age novel that explores the fear and anxiety of growing up and assuming adult responsibilities. The protagonist, Holden Caulfield, is a disillusioned teenager who struggles with the transition from adolescence to adulthood. In this essay, we...

• Catcher in The Rye

Our Responsibility For The Earth

“Anxiety is typically the result of being placed in situations that we cannot understand or control. We are most anxious when we cannot find a way to make sense of what’s happening, and when we feel as if there is nothing we can do to...

Argument Men and Particularly Princes

Princes may be beneficent which seems to be a distinctive feature but it may be giving them an awful recognition amongst their subjects. That is due to the fact that such princes may be beneficent and turn out to be using up all their sources...

• Personal Qualities

Parents Need To Be Educated In The Proper Nutrition

All expecting parents need to be educated in the proper nutrition for an infant. This causes these soon-to-be new parents to seek new information and acquire new knowledge which differs from their current education on nutrition. Many people know the proper nutrition for adults however,...

Do Legal-Status Mothers Take On More Responsibility Than Their Unauthorized Spouses?

Families all around the world have immigrated to the United States for a variety of reasons. My family came into this country during the wave of the 1960s created from the Bracero Program where hundreds of Mexicans entered the US. My grandfather was able to...

• Family Values

Importance Of Corporate Social Responsibility & Governance

Corporate Governance Corporate governance refers to the standard of relationship between the board of directors, management, shareholders, auditors and other stakeholders that determines how a company is functions. In corporate governance it identifies who has the power to make the decisions. Corporate administration guarantees that...

• Corporate Culture

College Education In Crucet's Story "Make Your Home Among Strangers"

Most students coming into college think that it’s their time to be independent, have fun, make new friends, and get a degree. Jennine Capo Crucet acknowledges that college is more than just having fun partying with friends and just getting to that degree you strongly...

Best topics on Responsibility

1. Community Responsibility: Culture of Care and Accountability

2. Why is Responsibility Important in Everyday Life

3. Why Is Responsibility Important For Health

4. Various Kinds of Responsibility Cost Accounting Centres

5. The Rights And Responsibilities Of A Citizen In America

6. My Personal Responsibility: Taking Responsibility For Your Actions

7. Corporate Social Responsibility: Taking Responsibility For Actions In Businesses

8. Exploring Citizen’s Engagement And Responsibilities Of A Citizen

9. Moral Vegetarianism: Responsibility Or Necessity

10. Age Of Consent And Age Of Responsibility

11. Themes of Responsibility and Respect in The Cask Of Amontillado by Edgar Allen Poe and Trifles by Susan Gaspells

12. The Appropriate Age for Driving Among Teenagers

13. The Social Responsibility of the Educators and Education Department

14. Reasons behind Kanhaiya Gulati Kanwhizz Sucess

15. Overview of Seth Lazar Views on Self-Defence and Responsibility

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• Personal Experience
• Multitasking

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Importance of Social Responsibility in Financial Accounting Essay

Introduction, accounting for managers, importance of social responsibility.

In the application of conceptual framework, standard setters have come up to many standards. The despite its importance, conceptual framework has received relatively little attention in the setting standards of financial reporting standard-setters. Thus, in making measurement decisions, standard-setters focus on applying the definitions of financial statement elements and the qualitative characteristics of accounting information in the context of the objective of financial reporting. Application of those concepts has resulted in a variety of measurement bases being used to measure financial statement amounts. These include historical cost, amortized historical cost, fair value, and value in use, among others.

The basis of preparing the generally accepted accounting standards emanates from financial accounting standards board concepts and statements that are known to create conceptual framework. This conceptual framework that is used in preparing financial accounting reporting standard as come under criticism from various academician and professionals. Concepts and statements that are used in coming up with financial statements include concepts of prudence, consistence, matching and accrues basis. Before we explore the critic point of view lets look at how this accounting concepts are framed.

The accounting concept are highlighted as follows objectives of financial reporting by business enterprises this explain the goals and aim preparation of financial statement or accounting report going to describe main uses as creditors and shareholders. It does not define other stakeholders who are most crucial. They go a head to classify users into present and potential with assumptions that these users have reasonable knowledge of accounting and they understand business and economic situations prevailing at the country and at time of reporting.

For the analyst, the conceptual framework is an important building block in understanding information provided by financial statements. The conceptual framework delineates the characteristics accounting information must possess to be useful in investment and other economic decisions.

It further defines objectives of financial reporting as to be used in making in decisions about investments giving of credit and when to sell the share. It also assumes that it will help them as assess the timing and uncertainty of cash flow in an organization.

A hierarchy of accounting qualities source figure 1 of FASB concepts statement no 2. Qualitative characteristics of Accounting information.(adapted from White G. I, Sondhi A. C. and Fried D.)

Statement of financial Accounting Concepts (SFAC) 1, sets forth the objectives of financial reporting. While statement of Financial Accounting Concepts (SFAC) is concerned with the Qualitative characteristics of Accounting Information.

Qualitative characteristics of Accounting Information. Analysts’ concern with the qualitative characteristics of accounting information derives from the need for information that facilitates comparison of firms using alternative reporting methods and is useful for decision-making. Although some of these characteristics are self-evident, others require some explanation. We start with relevance and reliability, key characteristics from the analyst point of view.

Relevance is defined as the capacity of information to make a difference in a decision. In practice, of course, the relevance of information depends on the decision maker. To a technical analyst, all financial data are relevant. For fundamental analysts, the relevance of information varies with the method of analysis.

Timeliness is an important aspect of relevance. Information loses value rapidly in the financial world. Market prices are predicated on estimates of the future; data on the past are helpful in making projections. But as time passes and the future becomes the present, past, past data become increasingly irrelevant.

Reliability is encompasses verifiability, representational faithfulness, and neutrality. The first two elements are concerned with whether financial data have been measured accurately and whether they are what they purpo0rt to be. Data without these characteristics cannot be relied on in making investment decisions.

Neutrality is concerned with whether financial statement data are biased. FASB proposals are frequently the object of complaints that companies will be adversely affected by the new standard. The principle of neutrality states that the board should consider only the relevance and reliability of the data, not any possible economic impact.

Unfortunately, relevance and reliability tend to be opposing qualities. For example, the audit process improves the reliability of data, but at the cost of timeliness. For that reason, financial statement users have generally not supported the auditing of quarterly data, believing that the time delay does not compensate for any improved data quality.

Relevance and reliability also clash strongly in a number of accounting areas. Market value data investments may be highly relevant but may be accurate only to a limited extent. Yet historical cost, although highly reliable, may have little relevance. It is old argument as to whether it is better to be “precisely wrong” or “approximately right.”

Analysts have generally opted for approximately right. They have supported the disclosure of supplementary data in such areas as natural resources off balance sheet financing and segment data. Auditors and prepares, more concerned with reliability, have often opposed the inclusion of less reliable data in the financial statements.

Consistency and comparability are also key characteristics of accounting information from the analyst perspective. Consistency refers to use of the same accounting principles over time. A broader term, comparability, refers to comparisons among companies. Consistency is affected by new account standards and voluntary changes in accounting principles and estimates. Accounting changes hinder the comparison of operating results between periods when the accounting principles used to measure those results differ. As the transition provisions of new accounting standards vary, it for such changes. For voluntary changes the effect of the change is generally disclosed only for the year of the change.

Comparability is a pervasive problem in financial analysis. Companies are free to choose among different accounting methods and estimates in a variety of areas, making comparisons of different enterprises difficult or impossible. Although the FASB has narrowed these differences somewhat in recent years, new types of transactions create new sources of non-comparability. Even when accounting differences do not exist, however, comparability may be missing because of real differences between the firms.

Worldwide accounting standards setting decisions relate to conceptual framework especially that of measurement. Therefore, conceptual framework helps standard setters to set standards this is based on the measurement concept. The accounting framework lack rules on the measurements. As accounting, concepts that are used assist in decision making to accounting setters. With the emergence of international accounting reporting convergence due to internal expansion of business , International Accounting Standards Board and Financial Accounting Standards Board are working together to improve conceptual frameworks for accounting setting.

Accounting for managers entails corporate social responsibility. Corporate social responsibility is the duty and moral obligation of corporate to other stakeholders. Corporate social responsibility refers to moral rights and wrongs of any business transaction or decisions. The moral responsibility of corporate depends on the nature of business and the individuals involved. Business organizations have adopted various ethical policies because they believe in showing the neighborhood their moral responsibility and in the process they have increased their sales.

Corporate social responsibility like any other concept is to be discussed broad terms. The concept of corporate social responsibility has been in existence since 1953 when it was introduced in American corporations. Its basic premises of ethical obligation have made managers and shareholders to own self interest in business transactions. Any manager who incurs business transactions will consider and address the needs of the society. Corporate social responsibility revolves around four basic theories which include social contract theory, social justice theory, rights theory and deontological theory.

Social contract theory : There exists a series of explicit and implicit contracts between individuals, organizations, and institutions forming central tenet of social contract theory. Tenet of social contract theory assumes social contracts evolve around an environment of trust and harmony. Corporations enter contracts with the society to receive resources and societal acceptance to operate in exchange for harmony.

Social Justice Theory : Social justice theory, examines the fairness in distribution of societal goods and services. Social justice theory argues that a fair society are considered, by of distribution of social goods. Corporate managers, have a responsibility in ensuring these goods have been appropriately being distributed in society.

Rights theory : Rights theory deals with the rights of various members of the society, including basic human rights and property rights. Corporate managers should not interfere with property rights and human rights of members of the society. Shareholders of a corporation who have certain property rights should not affect human rights of employees, local community members, and other stakeholders.

Deontological theory : Deontological theory assumes that everybody has a moral duty to treat everyone else with respect, including listening and considering their needs. This belief is for everyone, including corporate managers, shareholders and other stakeholder. Corporate social responsibility gives reasons why managers should work towards sustainable development.

Social responsibility is important as it takes care of accounting part of social activities to other stakeholders. Traditional accounting standard only caters for accounting for one or two stakeholders. The inclusion of social responsibility accounting setting will help in reducing the companies costs of trying to make decisions on how to account for them.

Barth, M. E. 2004. “Fair Values and Financial Statement Volatility”, in The Market Discipline Across Countries and Industries , Edited by Claudio Borio, William Curt Hunter, George G. Kaufman, and Kostas Tsatsaronis. Cambridge, MA: MIT Press.

Barth M.E. (2006); Standard-Setters, Measurement Issues and the Relevance of Research Graduate School of Business Stanford University and International Accounting Standards Board.

Landsman, W. R. 2005. “Fair Value Accounting for Financial Instruments: Some Implications for Bank Regulation.” Working paper. University of North Carolina, Chapel Hill.

Storey, R. K., and S. Storey. 1998. “The Framework of Financial Accounting Concepts and standards.” FASB: Norwalk, CT.

International Accounting standards Board. 2006. Preliminary Views on an Improved Conceptual Framework for Financial Reporting: The Objective of Financial Reporting and the Qualitative Characteristics of Decision-Useful Financial Reporting Information . London, UK.

Financial Accounting standards Board. 2006. Statement of Financial Accounting standards No. 157: Fair Value Measurements . Norwalk, CT.

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IvyPanda. (2021, September 16). Importance of Social Responsibility in Financial Accounting. https://ivypanda.com/essays/importance-of-social-responsibility-in-financial-accounting/

"Importance of Social Responsibility in Financial Accounting." IvyPanda , 16 Sept. 2021, ivypanda.com/essays/importance-of-social-responsibility-in-financial-accounting/.

IvyPanda . (2021) 'Importance of Social Responsibility in Financial Accounting'. 16 September.

IvyPanda . 2021. "Importance of Social Responsibility in Financial Accounting." September 16, 2021. https://ivypanda.com/essays/importance-of-social-responsibility-in-financial-accounting/.

1. IvyPanda . "Importance of Social Responsibility in Financial Accounting." September 16, 2021. https://ivypanda.com/essays/importance-of-social-responsibility-in-financial-accounting/.

Bibliography

IvyPanda . "Importance of Social Responsibility in Financial Accounting." September 16, 2021. https://ivypanda.com/essays/importance-of-social-responsibility-in-financial-accounting/.

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Accounting for the Evolution of China’s Production and Trade Patterns

This paper studies the evolution of China's production and trade patterns during its integration into the global economy. We document and explain new facts concerning changes in production and exports at the industry and firm levels using microdata and a quantitative Ricardian and Heckscher–Ohlin model with heterogeneous firms. Counterfactual simulations reveal that capital deepening made China's production and exports more capital-intensive, although labor-biased productivity growth acted as a counterforce. Consistent with the data, our model demonstrates that China's trade openness peaked around the mid-2000s and fell until the 2020s, while the world's exposure to Chinese exports rose continuously.

We want to thank Chong-En Bai, Davin Chor, Lorenzo Caliendo, Swati Dhingra, Elhanan Helpman, Kala Krishna, Dan Lu, Kalina Manova, Marc Melitz, Peter Morrow, Peter Neary, Ralph Ossa, Gianmarco Ottaviano, Frank Pisch, Larry Qiu, Veronica Rappoport, Stephen Redding, John Romalis, Thomas Sampson, Daniel Sturm, Heiwai Tang, Jonathan Vogel, Shang-Jin Wei, Kei-mu Yi, Miaojie Yu, Susan Zhu, Xiaodong Zhu, and participants of NBER, AEA, SED, Econometric Society and various conferences and seminars for helpful comments. However, all errors are our responsibility. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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