see attached filesACT301 Assignment 1, Semester , 2021 Page 1 ACT301 Accounting Theory, Semester...

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see attached filesACT301 Assignment 1, Semester , 2021 Page 1   ACT301 Accounting Theory, Semester 1, 2021  Assignment 1    Marks - Weight 15%    Due Date: Sunday 18th April Midnight (week 6)        Instructions:    ➢ This assignment consists of two questions. The due date and time is noted above.     ➢ It is your responsibility to ensure you factor in any time difference between  Darwin and other locations when submitting your assignment.     ➢ Please upload your file using the submission point for the assignment on  Learnline.     ➢ Assignments submitted via e-mail will NOT be accepted.     ➢ There is no need to complete a university cover sheet but DO please include your  name, Student Number, and your tutor’s name.           Ethics:    ➢ This is not a group assignment; it is an individual assessment. Your answers will  likely be different from other students. If portions of your assignment are copied  or very close to copying, all parties will be penalised for copying.  Copying would  be considered plagiarism and CDU has restrict policies in this regard (please see  https://www.cdu.edu.au/academic-integrity for details).              https://www.cdu.edu.au/academic-integrity ACT301 Assignment 1, Semester , 2021 Page 2    Question 1(Marks =15)      Let us assume that the government has become concerned that existing disclosure   regulation tends to fixate on the financial performance of organisation  but fails to address other aspects of corporate performance, including  failure to provide information about corporate social and environmental  impacts as well as about various initiatives and investments an  organisation has undertaken to improve its social and environmental  performance. As such, the government has decided to introduce  legislation that will require business corporations to provide  information about the social and environmental impacts of their  operations, as well as the social and environmental initiatives  undertaken by the corporations.    Required:    You are required to do the following:  (a) Explain from a ’public interest theory perspective’ the rationale  for the government introducing the legislation and how  the   government will  assess whether any proposed legislation should  actually be introduced.   (marks = 5)    (b) Predict from a ‘capture theory of perspective ‘ the type of  constituents that will benefit in the long run from any social and  environmental disclosure legislation. (Marks =5) ( c) Predict from an ‘economic interest group perspective’  whether any potential legislation to be introduced will lead to an  increase in the accountability of corporations in relation to their  social and environmental performance despite any implications  that this increased corporate accountability might have for the  financial success of large but heavily polluting organisations.  (Marks =5)  ACT301 Assignment 1, Semester , 2021 Page 3    Question 2 (Marks =20) Using the various theories that you have learnt so far, please explain in your own  words:      (a) What does ‘accountability’ mean? (Marks =5) (b) What aspects of corporate performance do you believe that a  business organisation should be accountable for? (Marks =15)   UTF-8''ACT301-Assessment-01-Rubric-S117.pdf  S121 ACT301 ACCOUNTING THEORY    ISSUES ASSESSMENT 1 RUBRIC, VALUE:  15%  Task Case Study: Critical analysis of a given accounting case(s).      Preparation Additional research in accounting literature. Criteria High Distinction  > 85%  Distinction  >75%60% 50% 12.75 >11.25 9 7.5

Harshit · Accepted Answer

Question 1 (a)-Answer
Public interest theory:
The basic assumption behind public interest theory is that it assumes that corporates are fragile and it has tendency to work in favour of particular business therefore it is required by government to make laws to regulate monitor and direct corporates and businesses in social/ public interest.
From a public interest theory perspective, the government should introduce the legislation or regulation if it is sure that the projected benefits to society exceed the projected costs. Detailed cost and benefit assessment is required. As determining costs and benefits is a subjective exercise and the assessment may result may show that some section of people will might benefited while others may bear more costs from the legislation introduction. Whether it is a balancing law is main factor for consideration. The final decision should be based on fact that whether the cost surpasses the benefit derived at overall level. 
The basic assumption behind public interest theory is that it assumes that corporates are fragile and it has tendency to work in favour of particular business therefore it is required by government to make laws to regulate monitor and direct corporates and businesses in social/ public interest.
Question 1 (b)-Answer
Capture theory
Capture theory would suggest that ultimately it will be the regulatedparty thatcaptures the regulatory process to ensure that any subsequentregulation bestserves its own interests. Since the disclosure will haveparticularimplications for organisations that generate varioussignificantenvironmental and social impacts (for example, the mining,chemical, transport and timber industries) then perhaps particularindustry associations will take actions to ensure they can impact theregulations (perhaps throughsecuring the support of people on theregulatory body or perhaps throughgaining membership of the body)
When any law or regulatory framework is made which regulates the industry for the benefit of the public it is public interest, but when the regulatory framework which was required to regulate the industry, instead starts working for the benefit of the industry it is called "capture”. This so-called capture leads to problem for the people at large. This what the public interest and the capture theory suggest. in the light of above let us critically examine The Government decision to not regulate corporations via specific legislation. At the outset what is needed is a balance between public interest and capture. If either of the ends are too stringently applied, it can either lead to losses for the industry or on the other hand losses for the masses. Public interest theory insist that regulation seeks the protection and benefit of the public at large, that the scarcest of resources are put to the best utilization for the masses.
Question 1 (C)
Economic interest group
The economic interest group theory of regulation proposesthat all people, including politicians and regulators are driven by self-interest. Therefore, from this perspective, the disclosure regulationwould only be supported by the regulators if somehow the regulationprovided benefits to them. Because large organisations can tend to havehigh levels of political power (perhaps through financial support of theregulator or related government, or through potential control over alarge number of votes) we might question whether ‘strong’ legislationwould be enacted that negatively impacts large corporations.
However, in essence corporations are profit oriented, though it can't be said that they are only profit oriented because at some place they do understand that the onus lies on them also to give back to the society. But the big question lies in do they know how much they have to do for the society. What laws or piece of legislation brings about is uniformity and a legal binding force which keeps both end of the spectrum in balance. Also, it serves as a guiding light for corporations,

ACT301 Assignment 1, Semester , 2021 Page 1 ACT301 Accounting Theory, Semester 1, 2021 Assignment 1 Marks - Weight 15% Due Date: Sunday 18th April Midnight (week 6) Instructions: ➢ This assignment...

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