Lecture 2: Young (2006) - Making up users

Question 1

What is a social construction study?

Answer 1

Briefly, social construction (SC) assumes that people construct (i.e., create, make, invent) their understandings of the world and the meanings they give to encounters with others, or various products they or others create; SC also assumes that they do this jointly, in coordination with others, rather than individually

Question 2

What is users? (according to CF)

Answer 2

Throughout the conceptional framework, users refer to those existing and potential investors, lenders and other creditors who must rely on the general purpose of financial reports for much of the financial information that they need.

Question 3

Critique on the user perspective (young, 2006) (mainstream accounting)

Answer 3

1. Critique the notion that according to CF, the user is a rational and economic decision-maker.
   - A “rational decision” requires no context but can be assumed to be the same across time periods, economic situations and decision-makers. There is research evidence that context matters.
2. The CF constructs the user as a economic discourse of efficiency, profitability and growth, which defines a “good” organization.
   - This excludes moral and ethical reasoning (e.g. Pension plans, health plans, sustainability issues.)

Question 4

Impact on the current doctrine:

Answer 4

Under this doctrine (CFs definition on users), The company managers have a moral responsibility only towards capital providers (Investors, creditors)

Employees, the environment, communities etc. is regarded as irrelevant.

Question 5

Fundamental questions:

Answer 5

Who are the users of accounting statements?

What is the purpose for which each particular type of user requires the information

How can we provide the user with information best suited for their needs?