The and it separates the right actions

The International Integrated Reporting Council (IIRC) (previously the International Integrated Reporting Committee) was formed in August 2010 and aims to create a globally accepted framework for a process that results in communications by an organisation about value creation over time.The IIRC brings together a cross section of representatives from corporate, investment, accounting, securities, regulatory, academic and standard-setting sectors as well as civil society. It comprises a Steering Committee, a Working Group and a three taskforces (dealing with content development, engagement and communications, and governance).The IIRC is chaired by Professor Mervyn King, Chairman, King Committee on Corporate Governance and Former Chairman, Global Reporting Initiative. Membership includes Hans Hoogervorst (IASB Chairman), Leslie Seidman (FASB Chairperson), Maria Helena Santana, (Chairperson, IOSCO Executive Committee), Göran Tidström (IFAC President), Jim Quigley (former global Chief Executive Officer of Deloitte), and many others. Paul Druckman is Chief Executive Officer.

The Utilitarianism theory is a theory of simple view,
consisting of the common right and wrong judgement of the business decisions. The
value of which can be determined by conducting a cost vs. benefit analysis of
all the decisions taken. As per this theory, the good as well as the bad aspects
of a decision should be measured in order to determine if it’s viable or not
and as long as an action or decision is proving to be more good than the bad,
it is deemed to be viable. This theory follows the simple principle that all
the actions have equal intrinsic good or bad aspects and in order to adopt
them, they must be objectively analyzed and studied for the overall consequence
of an action.

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The dash theory, this particular theory advocates that any decision that leads
to good results is right, even if it was made for the wrong reasons, and it
separates the right actions from the right moral decision. For one following
this theory, making a right moral decision means that they must make a decision
that will be leading to a good result. What they must do here is that they must
evaluate on basis of the consequences of an action and after the analysis they
must choose their next steps accordingly.

 The institutions must therefore evaluate
the positive and negative aspects of an action in order to determine if it’s
right or wrong, and as long as an action is proving to be more positive as
compared to the negative consequences, it can be deemed to be right. Following
the Utilitarianism theory can help all institutions as it is the simple
principle that all the actions or decisions have both good or bad effects and
they must be carefully analyzed and evaluated in order to deduce the overall consequence
of an action.

 

 Behaviour
accounting or human resource accounting is a form of accounting that the many
institutions and organisations follow in order to utilize the most abundant recourse,
this theory considers “people” as a resource. People could be defined as both
the employees of the organisation as well as their end users. The ultimate aim
of every business is profit maximization. In order to do that, the
organisations need to understand the buying behaviour of the end user as well
as the elements that lead to this buying behaviour. Without having a thorough
understanding of this, it is impossible for the business to gain more end users
and expand in the market. This is true, specially so in the increasingly
competitive market of today. Thus, the organizations should create a end user
profile that helps them in strategizing and targeting the desired end users and
achieve maximum efficiency out of their efforts. Another method to make the end
users loyal to the organisation, is to serve the end users in a way that helps
the organisations in gaining reference from them and makes them recommend the
organisation, product or service to their friends circle and family. In order
to do this, the organisations should first understand the reason why end users
are inclined towards their products or services. This can be for rational reasons
or emotional reasons. However, it is observed that the end user makes these
decision based on their mind using logic and comparison. The consumers
always try to make rational decisions which are driven by self interest, and
involve a careful evaluation of all the options that are available to them,
before making or finalizing any decision. The primary objective is always to
maximize the value for money, personal satisfaction and utility that they
obtain from a product or service.

The International
Financial Reporting Standards, known as IFRS, are the accounting guidelines for
many nations around the world with the goal of being the globe’s universal
reporting language. It has long been demanded by a number of nations, to
converge and make the accounting standards of the world universal to bring
about consistency in the accounting and financial reporting of the
organisations(IFRS, 2011).With the increase of
globalisation and promotion of international business organisations, it has
become very important to streamline financial statements for the multinational
organisations and have a set of universal accounting standards throughout the
world. The organisations currently spend a lot of amount in terms of time and
resources for complying with the specific reporting standards that are
different in each country that they operate in. This is a tedious job, and also
results in the reduction of efficiency and productivity of the organisations,
as much of the resources are wasted in doing this. Therefore, the need arises
of having universal accounting standards that will make it easier for the
organisations to have these reporting standards, and lower the barriers that
are currently existing between the nations impacting the international
business. Another advantage of having universal accounting standards is
that the people will be easily able to invest in foreign organisations and this
will bring about convergence in business and their operations(Pwc Team, 2015). The
organisations that are willing to expand to International locations by
acquiring organisations will also have better information and can make more
informed decisions if they have the correct accounting information in the required
formats. Standardization enables the organisations to also have an approach
that is uniform through all their international operations that are functioning
cross border and helps them in the alignment of their activities and processes
with their global presence. This will result in improved efficiency, reduced
cost and consolidation of the various accounting practices that are currently
going on in the organisations. Having universal accounting standards will
improve the corporate governance and bring about transparency in the accounting
and financial reporting standards. This will also reduce the risk involved for
all the stakeholders of the organisation including the shareholders,
organisational employees, directors, managers as well as their end users.The
standardization of accounting practices reduces the risk of fraudulent
activities that go on within the organisation and lowers the risk for the
investors, analyst as well as the authorities and helps them in making better
choices and decisions. The investors are better protected in the market having
transparent financial statements and uniform reporting standards. With the
advent of globalisation and promotion of international business organisations,
it became very important to streamline financial statements for the
multinational organisations and to have a set ofuniversal accounting standards
throughout the world. Therefore, the need arises of having universal accounting
standards that will make it easier for the organisations to have these reporting
standards, and lower the barriers that are currently existing between the
nations impacting the international business