For a long time, the development of Accounting has been underpinned by both systems theory and accounting theory to the extent that under each element of a system one can identify applicable accounting processes or concepts, for example, inputs and outputs under systems theory can respectively be mapped to accounting such that Transactions in the accounting cycle are the inputs and financial statements are the outputs. It is also asserted that the boundaries of accounting extend in two ways. First, those who need additional information for example managers and investors could turn to the traditional source of information like accounting standards and demand data of different types more relevant to their needs. This can be seen in the development of new accounting standards and in the changes made to existing ones. Secondly, accountants themselves have taken the initiative, broadened their areas of competence, and offered their services in providing information beyond the traditional financial statements to now include new areas like sustainability reporting, integrated reporting and sustainability assurance

Required:

a) Using examples of your own choice relate the practice of accounting to Accounting theory and elements within the Systems theory.

b) We all know that sustainability reporting is an example of expansion in the boundaries of corporate reporting. Mr “Clinton Muwezi” a student of accounting theory has argued that there is no need for Sustainability Reporting and neither is there a difference between Sustainability Reporting, Integrated Reporting and Corporate Social Responsibility. Discuss Clinton Muwezi’s position based on your understanding of Stakeholder Theory, Legitimacy Theory, Institutional theory and Resource Dependency Theory.