This fifth edition of Accounting Theory presents the principal approaches and proposed solutions to the problem of formulating an accounting theory and brings the book up to date with the latest theoretical developments. Accounting theory is a highly complex subject for students to understand. No single generally accepted theory has been created, despite many attempts. Different assumptions and methodologies have resulted in a variety of frameworks, which some experts find acceptable. But it is vital to uphold the consistent standards that define the nature, function and scope of financial statements and the techniques for producing them. To understand how accounting theories are constructed and verified is to understand the essence of accounting. The book analyses the formulation of theory and examines its various facets, including the history and development of the discipline and the regulatory framework. The text also discusses future trends in accounting, examines accounting research and presents a critical analysis of the context of the contemporary accounting profession. Accounting Theory begins by explaining the history, development, nature and uses of accounting. It goes on to cover all the key aspects of accounting theory including the traditional and behavioural approaches to formulating a theory; fairness, disclosure and future trends and philosophical/scientific views of accounting. Belkaoui's text does more than purely examine the issues surrounding the formulation of accounting theory; it puts accounting theory into its international context.
1. The history and development of accounting 2. The nature and uses of accounting 3. The structure of an accounting theory 4. The traditional approaches to the formulation of an accounting theory 5. The regulatory approach to the formulation of an accounting theory 6. A conceptual framework for financial accounting and reporting 7. Postulates, concepts and principles in accounting 8. Fairness, disclosure and future trends in accounting 9. Research perspectives in accounting 10. Accounting: a multiple paradigm science 11. The events and behavioral approaches 12. The predictive approach to theory 13. Positive accounting theory 14. Current-value accounting 15. General price-level accounting 16. Alternative asset-valuation and income-determination models