Alternative Approaches to Accounting There are a myriad of possibilities as to how you would approach this topic. But the information below and the articles loaded give you, I hope, many ideas. For - the way that accounting research, theory and practice can be developed is to explore alternative approaches to accounting information as societies interpretation of the role of accounting changes. Against - the way that accounting research, theory and practice is to provide stability and to stay with the known (and effective approaches to accounting). The exploration of alternative approaches to understanding accounting is both costly and time consuming serving no useful purpose. System Orientated Theories Legitimacy Theory and Stakeholder Theory are two theoretical perspectives that have been adopted by a number of researchers in recent years. The theories are sometimes referred to as "systems-oriented theories". Within a systems-based perspective, the entity is assumed to be influenced by, and in turn to have influence upon, the society in which it operates. Within both legitimacy theory and Stakeholder theory, accounting disclosure polices are considered to constitute a strategy to influence the organisation's relationships with the other parties with which it interacts. [Gray Owen and Adam 1996) According to Gray, Owen and Adams (1996), Legitimacy Theory and Stakeholder Theory are both derived from a broader theory which has been called Political Economy Theory". Issues that should be addressed include: What do we mean by a systems orientated theory"? How does political economy theory play a role? What do we mean by legitimacy theory (and social contract)? What is meant by stakeholder theory? Is institutional theory a systems orientated theory? Historical Cost Accounting Historical Cost Accounting is a traditional valuation method as it reflects only on the past cost of the asset, however in the contemporary business environment companies must remain flexible and transparent. Issues that should be addressed include: What Does Historical Cost Mean? What are the criticisms of the historical costs method? What alternatives are there to historical cost accounting? How is historical accounting better than alternatives