Corporate reporting: Science or art . . . . . . . ful

Abstract

At the macro-societal level, accounting influences taxation policy-making, wage bargaining and economic restructuring. Accounting plays a vital role in these-activities which result In the transference of wealth. At both the micro-and macro-societal level accounting has a social responsibility to create and sustain investor confidence in the capital and labour markets and the economic infrastructure which sustains these markets.

While the lack of intellectual roots may have been a pertinent accusation against accounting in the distant past, there is little doubt that the developments which have taken place in the last 50 years could not have transpired without an Intellectual foundation or the underpinning of a recognised discipline. Accounting has emerged as a multi-paradigmatic social science. Accounting theory is based on empirically tested assumptions about the Information needs of people given limited access to resources. The dynamic reaction of accounting in meeting the changing needs of society does not demand a change in its fundamental laws or principles, but rather requires professional judgement to be exercised In using these laws to satisfy the prevailing needs of society.

Key words:

• accounting principles/concepts
• art
• fair presentation
• multi-paradigmatic
• professional judgement
• science
• social accountability
• stewardship

Additional information

Notes on contributors

M Steele

Margo Steele is a professor in Accounting at the University of the Witwatersrand.