Contemporary Issues In Accounting And Finance Essay

coeval Issues In Accounting And Finance - Essay Example3, citing a 1966 definition). At the same time, accounting is grounded on philosophical assumptions about knowledge and on the relationship between theory and practice. Meanwhile, for Oatley (2001), financial canon is about regulating tills to protect depositors and shareholders. For Carvajal et al. (2009), financial prescript is something more encompassing because its key objective is to check out that all told financial activities that may pose systemic dangers are appropriately overseen. The same perspective is in like manner in Truman (2009). For Carvajal et al. (2009), the scope or perimeter of financial liberation involves three aspects. First, it must digest regulators with the widest gather in of the status of regulation action. Second, it must enable regulators to monitor and respond to risks. Finally or third, it must provide regulators with early warnings of risks. The subject area of financial regulation is serious because we have a highly financialized saving worldwide (Andersson et al. 2010). Accounting is important for managers (Webster 2004). At the same time, accounting financial statements can provide regulators with important tools through which they can monitor the financial system, check on the progress of regulation, and anticipate possible risks so they can be addressed or eliminated (Taylor 2009). Accounting financial statements can also be apply to monitor the performance of nongovernmental organisations (Morgan 2010). Financial regulation, however, is not entirely dependent on financial statements because financial regulation can cover all of the economy while financial statements from accounting cover only the economical conditions of firms or group of firms under a conglomerate (Borio and Tsatsaronis 2005 HM Treasury 2010). For example, financial regulators would also be monitoring liquidity, interest rates, capital flows, and other macroeconomic variables, not mere ly financial statements. Another character of regulation also uses financial statements but is different from financial regulation strengthening corporate governance. donnish research contributed to the sciences or fields of accounting, financial regulation, and corporate governance. In the process, donnish research protected and innovative modern living and, thus, it can be said that academic research improved our lives. Although not all journal articles are academic research, I review a few accounting journals to deck how academic research has been developing the field of accounting and, relatedly, financial regulation. In doing so, I will attempt to illustrate how academic research contributes to protecting and advancing life (Humphrey and Lee 2004 Sterling 1975). Barth and Landsman (2010) examined how financial describe contributed to the financial crisis. They concluded that fair value accounting played little or no voice in the financial crisis. Unfortunately, however, the lack of transparency in securitization and derivatives misled investors from assessing properly property values and the risk of bank assets and liabilities (Barth and Landsman 2010). Because of this, they proposed to require banks to recognize whatever assets and liabilities they have after the securitization to reflect better the underlying political economy of banks. Further, they recommended disclosure of more disaggregated information, disclosure of the sensitivity of derivative fair values to changes in market risk variables,