FACULTY OF BUSINESS, GOVERNMENT & LAW

Assignment Coversheet
Student ID number

U3103753

Student Name

Laura Jenifer

Unit name

Contemporary Issues in Accounting

Unit number

6399

Name of lecturer/tutor

David Carter

Assignment topic

Accounting as reality construction: Towards a new epistemology

for accounting practice A Critical Article Review

Due date

5:00 PM, Monday, 19th September 2016

Word Count

625

Student declaration
I certify that the attached assignment is my own work. Material drawn from other sources has
been appropriately and fully acknowledged as to author/creator, source and other bibliographic
details. Such referencing may need to meet unit-specific requirements as to format and style.
I give permission for my assignment to be copied, submitted and retained for the electronic
checking of plagiarism.
Signature of student: __LAURA JENIFER__ Date: 18/9/2016
(Students submitting work electronically can type their name in the space for signature above,
but must produce a signed copy of this coversheet on request.)

According to Morgan (1988), presenting an accurate and fair reality in the report are the primary
and essential responsibilities for accountants; however, in fact, those are only in the accountants
mind. The idea of objectivity cannot be created by accountants to present the actual situation as
the accounting language has a central power to construct the accountants interpretation of what
matters and how in presenting the real situation. The accounting claims numbers are presented
the objectivity, yet the way the accountants construct and play with the numbers, it shows that
the ideas subjectivity are presented rather than the objectivity ideas to describe the real situation.
Moreover, the persuasiveness of accountants is essential to influence people decision as
accountants assumed that the information is provided based on the trueness and fairness view. In
fact, the information is based on the arbitrary assumptions which cannot be presented for being
true and fair. Consequently, many decisions which based on the accounting information have
affected many aspects including the problems in the society in accordance with the statement of
Cooper & Sherer (1984, p.222).
The idea of Morgan (1988, p.482) was Accountants provide the objective view is myth.
These ideas significantly insulted the accountants view; however, I would agree with the
concepts which said that accountants are not able to provide the objective views aside from
providing the subjective view accordance with their expertise and knowledge. Morgan (1988, p.
482) also added that the works of the accountants are based on the arbitrary assumptions and
agreement, and with their expertise and knowledge, accountants persuaded as they provide the
true and fair view. Similarly, Hines (1991, p.317) mentioned that the assumption of the
objectivity is based on the common sense assumption of realism. Because the common sense
assumptions are used and applied in everyday lives, the perception of the assumptions will
become true (Hines, 1991, p.317). Therefore, the objective view of the real situation cannot be
provided by accountants.
Also, Morgan (1988, p. 484) stated that How accounting is central to the process of reality
construction within an organisation, shaping decision-making in accordance with the values and
perspectives underpinning the accounting principles used.
My opinion to the statement that it has shown that the power of accounting principles has
impacted the organisations in relation to control their daily activities. Moreover, the reality in the
organisation is constructed by accounting and which the accounting principles are applied to
influence the decision-making. Hines (1991, p.314) also stated that the financial accounting
practices are involved in reproduction and the process of the social construction of the reality.
The concept also clarified by Morgan (1988, p.482) on how the process in the hospital is
changed in order to stay and meet the budget for the financial control. The accounting has a
central power to construct the reality and ignore the social consequences of the decision in the
accounting practices. The main priority on the hospital aspect is patients, yet meeting the budget
is a central focus for running the hospital.

Overall, I found this topic is interesting because it shows how the accounting constructs the
reality. Again with the accountants expertise and knowledge, the idea of the objectivity to
present the reality seems exist to influence the decision-making. The impact of the decision
based on the accounting information and the practises is affecting the society where the humanity
is not the concern for the organisation. The main concern and interest of the organisation is to
satisfy certain parties without paying attention to the society. I believe that those critical
explanation of the link between accounting power and the reality construction deliver me the
ideas on how accounting take a role in society which is really helpful in establishing the structure
of my final essay.

Reference list
Cooper, D, & Sherer, M 1984, 'THE VALUE OF CORPORATE ACCOUNTING REPORTS:
ARGUMENTS FOR A POLITICAL ECONOMY OF ACCOUNTING', Accounting,
Organizations & Society, 9, 3/4, pp. 207-232, Business Source Complete, EBSCOhost, viewed
on 10 September 2016.
Hines, R. (1991), The FASB's Conceptual Framework, Financial Accounting and the
Maintenance of the Social World, Accounting, Organisations and Society,16, 313-35, viewed on
10 September 2016.
Morgan, G. (1998), Accounting as Reality Construction: Towards a New Epistemology for
Accounting Practice, Accounting, Organisations and Society, Vol. 13 No.5, pp.477-485, viewed
on 10 September 2016.