ARC model in euro crisis
The total numbers of words: 3037
Accountability Representation & control in Euro Crisis
Introduction
Compared with the worldwide financial crisis happened since 2008, the European sovereign debt crisis has been the most serious problem for the ECM. This crisis, also called “the Euro Crisis”, has been regarded as the most serious financial crisis at least since 1930s. This crisis began with the Greek fiscal crisis in the autumn of 2009, and then it evolved into the “PIIGS Crisis”—five main European countries namely Portugal, Italy, Ireland, Greece and Spain were not able to gain enough economic growth in order to pay their debt obligations, and this is why it’s called sovereign debt crisis. Just about half a year before, a massive unexpected bank run happened in Cyprus, which shocked the world. Many scholars, such as Gunther Schnabl (2013), explain the crisis from a perspective of policy problem on balance sheet, so this essay would analyze the euro crisis from accounting ACR concept. This essay begin with the definition of ARC and the introduction of the Euro Crisis; then, the causes of this crisis will be analyzed from the ARC perspective; next, two countries, Germany and Greece, will be cited to illustrate the performances of two different types Euro countries when crisis happens; subsequently it will give some suggest and comes to a conclusion finally.
Concepts of ARC
ARC is the intrinsic concept of accounting, meaning accountability, representation and control.
Accountability, to put it simply, means to be held liable or responsible for the activities to some individuals or other group. Just like T.shearer (2002) put it, “By seeking accountability we recognize the obligation to the others”. Accountability as a goal can better portray the current accounting practices. But in accounting practice, accountability should be able to guide and advice but not just be mere
Accountability Representation & control in Euro Crisis
Introduction
Compared with the worldwide financial crisis happened since 2008, the European sovereign debt crisis has been the most serious problem for the ECM. This crisis, also called “the Euro Crisis”, has been regarded as the most serious financial crisis at least since 1930s. This crisis began with the Greek fiscal crisis in the autumn of 2009, and then it evolved into the “PIIGS Crisis”—five main European countries namely Portugal, Italy, Ireland, Greece and Spain were not able to gain enough economic growth in order to pay their debt obligations, and this is why it’s called sovereign debt crisis. Just about half a year before, a massive unexpected bank run happened in Cyprus, which shocked the world. Many scholars, such as Gunther Schnabl (2013), explain the crisis from a perspective of policy problem on balance sheet, so this essay would analyze the euro crisis from accounting ACR concept. This essay begin with the definition of ARC and the introduction of the Euro Crisis; then, the causes of this crisis will be analyzed from the ARC perspective; next, two countries, Germany and Greece, will be cited to illustrate the performances of two different types Euro countries when crisis happens; subsequently it will give some suggest and comes to a conclusion finally.
Concepts of ARC
ARC is the intrinsic concept of accounting, meaning accountability, representation and control.
Accountability, to put it simply, means to be held liable or responsible for the activities to some individuals or other group. Just like T.shearer (2002) put it, “By seeking accountability we recognize the obligation to the others”. Accountability as a goal can better portray the current accounting practices. But in accounting practice, accountability should be able to guide and advice but not just be mere