the assignment is related to Accounting theory and following Structure and components conceptual framework in 2 types of theory including positive and normative theories

Scandal at Infosys
Introduction
Infosys is one of the biggest technological firm of India, it has been considered as one of the best working companies of India. One of the alarming and concerning situation which came across was the transparency and the corporate governance that was being followed by the company. The pay of CEO Vishal Sikka has vast increase in last year.
Story and News:
The company has recently been found guilty for its reporting. It has not reported its corporate governance issues adequately. But on the investigation which was conducted by Gibson Dunn and Control risks, they were not able to find any wrong doing within the form. Apart from this, the CEO of the company Vishal Sikka also resigned the company. Vishal Sikka resigned the company as the cash compensation of the CEO went down and his share for restricted stock units and stock options increased incredibly. (Web taem, 2017)
Apart from this, one of the issues that came across in the annual report of the company included the salary component of Vishal Sikka. In 2016-17, the cash component of Visha; Sikka’s salary came down to Rs. 16.01 crore whereas the cash portion for the year 2015-16 was Rs. 48.73 crore. The salary of the CEO fell down by 67% in an year which was one of the issues of concern in the financial reporting of the company. The fall in the salary was covered by the restricted stock incentives of Rs. 18.6 crore in the year.
Accounting implications
The accounting implication of the scandal by Infosys is negligible, the main issue which came to the highlight was the corporate governance issues, the resignation of the CEO of the company and the lately sex scandal issue of the company.
The company follows the different standards and the principles in reporting its financial statements and annual report. The company is consistent inits reporting. But in 2016, the company has a dramatic change
As the company was proven correct for its reporting and the corporate governance issues, the company does...