Documente Academic
Documente Profesional
Documente Cultură
Theory
I.Dwinanto Bimo
Email : idbimo25@yahoo.com
idbimo@yahoo.com
Method
○ Presentation
○ Paper
○ Discussion
○ Assessment : Mid test (30%), Final Test
(35%), paper (30%).
○ Reference : Accounting Theory : Jayne
Godfrey, Allan Hodgson, Scott Holmes, 7th
edition.
Content
○ Introduction
○ Accounting theory construction
○ Conceptual framework
○ Measurement theory
○ Accounting Measurement system
○ Asset
○ Liabilities
○ Equity
○ Revenue
○ Expenses
○ Positives accounting Theory
○ Capital market research and the efficient markets
○ Accounting Research
Introduction
○ Why it is important :
○ Chambers :
Accounting has frequently been described as a body
of practices which have been developed in response
to practical needs rather than by deliberate and
systematic Thinking.
○ Accounting practices have multiple demands such
as managers and employees, investors, creditors,
taxation, legislative authorities and society in
general. So, who should financial accounting reports
serve? who are the primary users of accounting
information? We call this the 'objective problem' -
the problem of determining the objective of financial
information.
Examples of uses of accounting
theories
○ Theories might:
– prescribe how assets should be valued
– predict why managers will choose particular accounting methods
– explain how an individual’s cultural background affects accounting
information provided
– prescribe what accounting information should be provided to
particular classes of stakeholders
– predictthat the relative power of a stakeholder group will affect the
accounting information it receives
– explain or predict how accounting disclosures might be used as
part of a strategy to legitimise the operations of an organisation
Accounting Theory
○ Goldberg:
No theory of accounting was devised from the time of
Pacioli down to the opening of the nineteenth century.
○ Growth of the business sector increased the demand for
detailed accounting information, for improved
techniques, and for accounting practices such as
depreciation which addressed the long-term nature of
assets.
Pragmatic accounting (1800-
1955)