HW2 (15 pts)
1. “Hines (1988) and other accounting theorists pose the notion that accounting socially constructs reality, rather than merely report the pre-existing reality of accounting transactions. As a result, all accountants must realize that accounting is a fluid, social construction that is constantly changing, and often becomes “what it was not, rather than what it should be.”
Required: Using a minimum of four direct quotes from Hines’ article (don’t forget the end notes of the article!), explain why financial accounting theory and practice are NOT the scientific, objective, and value-free technical endeavours they are believed to be, and what this means for understanding accounting practices.
Use the examples discussed in class and the contents of the article to support your assertions about the social construction of accounting. Include quotations from the article to help support your assertions – a quote can save many words of explanation!
