Generational Accounting Educational Theory and Application

Question: Discuss about the Generational Accounting for Educational Theory and Application. Answer: Introduction: The relative issue that is been detected from the operation of Qantas Airways is the reduction in wages and employees. In addition, the reduction in employees was due to the loss faced by the company during 2014 (Smh.com.au 2014). Furthermore, the decline in staff and wage adopted by the company mainly had a negative impact on the ethical and social responsibility. Accounting theories that relate: Accounting theories mainly help corporations to maintain steady flow of operations by following relative ethical theories depicted in accounting theories. The relative theories are depicted as follows. Utilitarianism theory mainly state that decisions and actions that is been taken by the company must have positive impact, while harm is minimised. The Egoism ethical theory mainly states that the decisions that is been taken is good for the company or not. This theory mainly states that the company is able to improve their overall operations by making adequate decisions to make higher profits (Raj and Roy 2016). Deontological Ethics theory mainly depicts fairness on the actions, which is been taken by the company in improving their operational capability. Virtue Ethic theory mainly focuses on character traits, which is acknowledge across cultures. In addition, the virtue ethics mainly focuses on moral character and not duties rules or consequences. Discussion: The decision that was taken by Qantas in 2014, regarding the job cuts and lowered wages had a negative impact on the ethical outlook of the company. In addition, the jobs cuts of 5000 employees were mainly conducted after declaration of $252 million loss on the first half of 2014 (Smh.com.au 2014). The loss was mainly conducted by the high wage scheme, which was adopted by the company before 2014 announcements. Furthermore, adoption of the decision mainly violates accounting theories, which is been used by companies to maintain its operations. Blayney, Kalyuga and Sweller (2015) mentioned that conducting operations according to the accounting theories mainly allows companies to maintain ethics in their operations. On the contrary, Bonin (2013) argued that violations of accounting theory is mainly conducted by the company to improve their profit generation capacity. Moreover, the company mainly violates Utilitarianism, Deontological Ethics, and Virtue Ethics accounting theory by taking the job cutting decisions. The job cuts mainly hampered the overall accounting theory, which was utilised by the company to reduce the overall losses incurred from high wages. Gynther (2014) mentioned that decline in revenue mainly reduces friction of ethical theories depicted in accounting theory. However, Egoism accounting theory is mainly supported by the company, as its takes an effective decision for supporting its overall activities. Recommendations: The drastic decision of the company in cutting excess jobs in 2014 mainly violated the accounting theories. In addition, the company could have lowered the wages of the employees, which in turn could reduce the excess costs incurred from its operations. This step could have reduced the harm conducted on employees and ethical preference of the company. In addition, reduction in wages of employees that are not contributing to the productivity could mainly reduce the negative impact of the decisions. Reference: Blayney, P., Kalyuga, S. and Sweller, J., 2015. Using Cognitive Load Theory to Tailor Instruction to Levels of Accounting Students Expertise.Journal of Educational Technology Society,18(4), pp.199-210. Bonin, H., 2013.Generational accounting: theory and application. Springer Science Business Media. Gynther, R.S., 2014.Accounting for Price-Level ChangesTheory and Procedures: Pergamon International Library of Science, Technology, Engineering and Social Studies. Elsevier. Smh.com.au. (2014).Qantas cuts 5000 jobs, posts $252 million first half loss. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/aviation/qantas-cuts-5000-jobs-posts-252-million-first-half-loss-20140226-33i4c.html [Accessed 15 Jan. 2017]. Raj, S.K. and Roy, S., 2016. Accounting Theory: An Ethical Perspective of Real Life Scenarios.International Journal of Business and Social Research,6(10), pp.47-55