Contemporary Issues in Accounting
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Contemporary Issues in Accounting

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Question

Introduction:

Clearly and concisely define your issue. Capture the reader's attention, why the research is important and the theoretical basis that you have adopted. Work on the introduction every week but complete it last.

Length: one paragraph.

Practical Motivation:

Demonstrate, with references where possible, why the issue is important to practice (e.g., to accountants, managers, regulators, the general public). References here may be to academic journal articles, but may also be to newspapers etc. 

Length: one paragraph 

Theoretical Motivation:

Provide an overview of the contribution that the research will make to theory (e.g., replicating existing research, testing theory, addressing gaps in existing research, reconciling conflicting results from prior research…) 

Length: one or two paragraphs 

Literature Review:

Build a logical argument for a specific relationship between two variables (i.e., a theoretical framework), using established research published in academic journals. Start by identifying your theoretical framework, naming the theory and referencing the seminal article(s), identify the key theoretical constructs that you will be considering and the predicted relationship based on the theory.

Carefully review the empirical research, the proxy measures that have been tested in previous studies, and the results. Highlight the extent to which previous research has been consistent or if there have been differences (which you might have mentioned in the theoretical motivation). 

Remember you are building an argument for a specific relationship between two variables: clearly define the two variables; explain how these two variables are understood to be linked; and outline the reasons given for why there is a relationship between these two variables. Critically discuss the strengths and limitations of the existing research and use this to justify the argument for a modification to the theory or a new application of the theory. Then draw your conclusion about the predicted relationship for the variables that you plan to test. The argument must lead to a specific prediction (to be stated in the next section) that can be tested. 

Length: this is the longest part of your proposal, similar to the 'body' of other assignments.

Hypotheses:

Clearly state your testable and falsifiable predictions. A single hypothesis is sufficient, however, sometimes your argument might lead to two hypotheses. Express your hypothesis in the alternative form where appropriate (i.e., the relationship that you predict based on the theory).

Solution

Introduction

Carbon accounting can be referred to as the process that is undertaken to measure the amount of carbon dioxide that is emitted by a particular entity. The carbon financial accounting is used by the individuals, corporations, and the nation states for creating the carbon credit commodity that are traded on the carbon markets. The carbon accounting includes a wide range of practices with two major categories – physical carbon accounting and the financial carbon accounting (Bebbington & Larrinaga-Gonzalez 2008). The physical carbon accounting is the accounting that focuses on quantifying the amount of greenhouse gas emission in the atmosphere. The financial carbon accounting on the other hand, focuses on giving a financial market value to the carbon. There is a global emergency to reduce the carbon levels and the other forms of greenhouse gases. Therefore, there is an immediate need to adopt the Carbon Financial Accounting. Therefore, this study will focus on the determinants or the factors that influence the adoption and disclosure of the financial carbon practices. There are, however, a number of factors that influence the disclosure of financial carbon practices, but this paper will focus only on the size, regulations and listing status in the context of Australian organizations (Fang, XiaoLin & Zhang 2013).

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Practical Motivation

One of the major practical motivations to conduct this research is the improving role of the profession of accounts and an increased need of reducing the carbon emission. In addition, the total emission of greenhouse gas in Australia in the year 2013 was 16.35 metric tons (The Guardian 2014). This indicates that there is an immediate need to reduce the carbon emission. The accounting profession is going beyond its traditional role. In addition, more than just reducing the cost and increasing the profitability it has now become essential to achieve sustainability (Economia 2017). Achieving sustainability is one of the strategic goals for the business in terms of delivering long -term value and managing the risks for the shareholders, employees and customers. It is therefore important to determine the factors that affect the disclosure of the carbon financial accounting. It is important for  organizations to disclose their carbon emission information to its stakeholders (University of Edinburgh 2017).There are a number of factors that affect the disclosure of carbon financial information, but this paper will only focus on the size of firm, regulations and the listing status. The issue of reducing the carbon emission is important for all the ones who are directly or indirectly involved in the process such as managers, accountants, regulators and even the general public. (Vansadia 2018).

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