System Theory asserts that any system has a clear structure made up a number of elements .The structure of accounting as an information system can be linked to each of the elements advanced by system theory .On other hand ,Accounting Theory underpins the modification , expansion or contraction of the boundaries of the accounting information system .It can therefore be deducted that a connection /nexus exists between system theory and accounting theory .

Required

a) - Discuss the above paragraph clearly bringing out your understanding of a system and system theory and core elements of a system?

b) - In view of the existence of a nexus between accounting theory and system theory based on your understanding of accounting theory explain how conceptual bounders of financial reporting can be expanded?