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Read the articles
Mining tax: Public Contest through the Popular Media The Mining Industry s Advertising War against the Australian Labor Government. The press and issue framing in the Australian mining tax debate.
Using the article provided discuss the following:
1. What is the accounting issue relate to this article?
2. Who are the stakeholders? Describe each stakeholder and their concerns.
3. What is motivating the stakeholders to act in this manner and who will be affected by these actions?
4. Using the stakeholders you have identified detail what accounting theory might explain their actions or perceptions?
5. Compare and contrast the different theories and identify which of these theories is most important and explain reasons why you think your chosen theory is the most important.
6. Relate your answer to the link between theory and practice
You should consider accounting theories that you believe are relevant.
The following article deals with the issue with respect to the mining industry in Australia. The issue is with respect to the proposal put forth by the Australian Labor Prime Minister Kevin Rudd in 2010, a time when the Australian mining industry was on the rise.
The proposal of imposing a Mineral Resources Rent Tax (MRRT), a figure of 40 percent, on the profits of the mining corporations in Australia, sparked an argument between the various mining companies and the Australian government.
The article provides a glimpse with respect to the way in which both the sides, the corporations and the government, took forward their issues with the help of various advertising campaigns through various media in order to prove their point. Apart from the campaigns, it also provides a small insight into the consequences of those advertising campaigns and the way it affected the policies of the government. (Hobbs, 2013)
The article will also compare the various accounting theories associated with the conceptual framework of the IASB and the accounting theory which would match the actions of the stakeholders involved in the given issue with respect to the mining industry of Australia. (Ernst and Young, 2010)
The mining industry in Australia was on a boom after the global financial crisis that hit in 2008. It has been regarded that it was the mining industry and the revenue obtained from it that dragged Australia from its problems associated with the financial crisis. The mining industry has been one of the major sectors that contribute to the economy of the country. (Mansillo, 2014)
However, the fact that the mining industry and the huge corporations involved in it utilized the low tax payments system to their great advantage was becoming a huge problem. The government felt that the corporations were at fault of taking away the wealth from Australia and investing it overseas thereby affecting the economy of the country as a whole.
It was important for the government to step up and take the required actions in order to make the wealth available for various public facilities and boost the economy of the country. The Mineral Resources Rent Tax (MRRT) which was put forward in order to solve this problem was about to face various obstacles, mainly from the mining corporations, who would be forced to be content with providing higher taxes and lower profits. (Dowding, 2014)