It Could be Argued that the Traditional form of Accounting has been Beneficial to the Capital Markets and Management: Accounting& Finance Coursework, LSBU, UK

University London South Bank University(LSBU)
Subject Accounting& Finance


It could be argued that the traditional form of accounting has been beneficial to the capital markets and management often to the detriment of shareholders and society as a whole.

The various corporate failures over recent years and the current pandemic has highlighted the fact that the current accounting rules do not allow companies to be financially robust to be able to withstand extreme changes in the economic and social environment.

Also, with the increasing awareness of how companies are adversely affecting the natural environment and the social environment with their manufacturing and other processes, there is a growing need for accounting to change in order to reflect the needs of society which now sees sustainability and ethical corporate behaviour amongst other factors as important objectives.

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