International financial accounting and theory Term Paper

International financial write up and theory - Term Paper ExampleAccounting theories are primarily developed to enhance sparing decision making prior to financial record keeping and reporting. In the modern times however, industrial activities keep up had twain positive and negative impacts especially on the society and the environment. The government and the society have consistently aired their concern and pressure on companies to address the adverse impacts of handicraft undertakings on both environment and society. In this regard, social and environmental accounting theories have been integrated into the accounting practices to account for these concerns. The strengths, weaknesses and limitations of these theories and their jell in the current accounting frameworks are evaluated in this paper. Social theory in accounting practices is interested with the social office of entities in regard to their recording keeping and financial reporting. Although it is not necessary for c ompanies and business entities to prepare income statements and balance sheets that pertain to social responsibilities, it is important for such entities to evaluate their social achievements and success by evaluating their social performance aspects. Social accounting is used to measure this performance and report the social responsibility of a firm given the social activities it undertakes (Business and Economic Review, 2006, p.21).