Compose a 1250 words essay on Contemporary issues in accounting and finance:contribution of academic research to accounting,financial regulation and life. Needs to be plagiarism free!Download file to

Compose a 1250 words essay on Contemporary issues in accounting and finance:contribution of academic research to accounting,financial regulation and life. Needs to be plagiarism free!

Accounting deals with “identifying and communicating economic information to enable informed decisions by users of the information'.At the same time, accounting is grounded on philosophical assumptions about knowledgeThe subject area of accounting and finance involves real life. Accounting and finance are concerns of organisations and organisations involve “social structure with life” (Simpson 2011, Slide 7). A subject area of accounting and finance, financial regulation, involves preventing economic crises (International Monetary Fund 2009). Accounting deals with “identifying, measuring and communicating economic information to enable informed judgements and decisions by users of the information” (Collier 2003, p. 3, citing a 1966 definition). At the same time, accounting is grounded on philosophical assumptions about knowledge and on the “relationship between theory and practice” (Simpson 2010, Slide 3). Meanwhile, for Oatley (2001), financial regulation is about regulating banks to protect depositors and shareholders. For Carvajal et al. (2009), financial regulation is something more encompassing because its key objective is to “ensure that all financial activities that may pose systemic risks are appropriately overseen.” The same perspective is in Truman (2009). For Carvajal et al. (2009), the scope or perimeter of financial liberation covers three aspects. First, it must provide regulators with the widest possible view of the status and progress of regulation action. Second, it must enable regulators to monitor and respond to risks. Finally or third, it must provide regulators with early warnings of risks. The subject area of financial regulation is important because we have a highly “financialized economy” worldwide (Andersson et al. 2010). Accounting is important for managers (Webster 2004). At the same time, accounting financial statements can provide regulators with important tools through which they can monitor the financial system, check on the progress or status of regulation, and anticipate possible risks so they can be addressed or eliminated (Taylor 2009). Accounting financial statements can also be used to monitor the performance of nongovernmental organisations (Morgan 2010). Financial regulation, however, is not entirely dependent on financial statements because financial regulation can cover all of the economy while financial statements from accounting cover only the economic conditions of specific firms or group of firms under a conglomerate (Borio and Tsatsaronis 2005. HM Treasury 2010). For example, financial regulators would also be monitoring liquidity, interest rates, capital flows, and other macroeconomic variables, not merely financial statements. Meanwhile, another type of regulation also uses financial statements but is different from financial regulation: strengthening corporate governance. Academic research contributed to the sciences or fields of accounting, financial regulation, and corporate governance. In the process, academic research protected and advanced modern living and, thus, it can be said that academic research improved our lives. Although not all journal articles are academic research, I review a few accounting journals to illustrate how academic research has been developing the field of accounting and, relatedly, financial regulation. In so doing, I will attempt to illustrate how academic research contributes to making life more bearable and addressing life itself (Humphrey and Lee 2004. Sterling 1975). Barth and Landsman (2010) examined how financial reporting contributed to the financial crisis. They concluded that fair value accounting played little or no role in the financial crisis (Barth and Landsman 2010). Unfortunately, however, the lack of transparency in securitization and derivatives misled investors from assessing properly property values and the riskiness of bank assets and liabilities (Barth and Landsman 2010).