ROLE OF ACCOUNTING IN SOCIETY - Critical Theory essays & term papers     

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ROLE OF ACCOUNTING IN SOCIETY - Critical Theory Free Essay, Term Paper and Book Report

The role of accounting in society is to provide information that can be relied upon users for economic financal decisions. However, critical theory challenges this objective of accounting. Critical theory argues that accounting is not always as objective or neutral. In addition criticises the role accounting plays in reinforcing existing power imbalance in society, focusing on capital providers and ignoring the workers and other affected parties. Ruth Hines introduces the idea that accounting 'creates reality'. Ruth implies that we have not so much grasped reality, as created it, by thinking of in a certain way, and treating it in that way. In other words, accounting numbers or reports can be shaped and moulded and measured without interference. If people have a certain conception of reality, then naturally we must reflect this conception (Ruth Hines, 1988). This directly links to legitimacy theory. Accountants may agree to perform activities in a way that will provide socially desired results for the approval of society. This perception that accounting creates or constructs reality......

Word Count: 577
Page Count: 2.3  (250 words a page / double spaced)

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