Explain the importance in critical accounting theory of assumptions regarding th

Question

Explain the importance in critical accounting theory of assumptions regarding the distribution of power in society. How do these assumptions differ from those adopted in other theoretical perspectives Explain the importance in critical accounting theory of assumptions regarding the distribution of power in society. How do these assumptions differ from those adopted in other theoretical perspectives Explain the importance in critical accounting theory of assumptions regarding the distribution of power in society. How do these assumptions differ from those adopted in other theoretical perspectives

Explanation / Answer

Critical accounting theory focus on the better promotion of the society hence this theory has more importance in the overall development of the society. This theory suggest that leaving everything on the market will ignore the underdeveloped sections of the society hence leaving evething on the market is not good idea.

Crtical accounting theory focus on the such type of knowledge form which serve without any discrimination and this theory also question prevailing arrangements of the society. As per this theory, other theories just support existing system of the society hence other theory do not advocate for any major change for power distribution in the society. This theory search the scope of accounting in the overall welfare of the society which is not done by the other theories.

Thus critical accounting theory has unique importance in the proper power distribution in the society.

Now let’s see some other theories of accounting which are not focusing in same manner as this crtical accounting theory does.

Positive Accounting Theory;

As per this theory it is believed that leaving everthing to the market will generate some positive outcomes for the society but as we know that it is not true because it will lead to the maximization of self interest & wealth. Critical accounting theory also argue against this assumption and says that it will violate the interest of some special classes which need special attention & care.

Legitmacy Theory;

This theory believes that changing pattern of a particular company or changing for making a company looking good will make positive impact on the society but as per critical accounting theory it is not true because in a society there are versatile perceptions that is why influence of the organisation operation will show only trivial impact.

Corporate Social Responsibility;

Critical accounting theory not agree with corporate social responsibility because as per critical accounting theory CSR does not do more for changing behaviours of the individuals of the society and also is not much effective in bringing more society related changes. CSR only bind with the rules & regulations and focus on the discharging their corporate liabilities hence this does not gives desirable results to a society.

On the basis of above comparative studies we can say that no doubt there is always a scope for some improvement in any theory but in compare to other theory critical acounting theory looks much better and have more importance in the development of equitable society.

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