Contemporary Issues in Accounting 2e Customised 1st Edition by Craig Deegan Solution manual

constituency are critical of the standard-setting body then in certain situations
the particular body has been disbanded and replaced by another group
(obviously this does not always happen). Hence, whether a particular accounting
proposal is promoted by a standard-setting body might be dependent upon
whether the proposals are acceptable to the standard-setter’s constituency.
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Solutions Manual to accompany Deegan, Financial Accounting Theory 4e
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A further issue that is raised in Chapter 12 of the book relates to the views of
‘critical theorists’. They argue that the rules which exist in financial accounting
act to maintain the vested interests of people with wealth and to undermine the
interests of other people (the work of some critical accounting theorists is
informed by the works of philosophers such as Karl Marx). For example,
financial accounting emphasises the positive attributes of increased income and
profits (which ultimately go to the owners of capital) but highlights the negative
implications of rising costs—including payments made to employees. Critical
theorists would argue that standard-setters would be more likely to support
particular accounting proposals to the extent that the proposals support existing
social structures (which in turn support the social positions of professionals,
such as accountants).