Accounting Theory Formulation as a TOOL for Enhancing International Harmonization of Accounting Standards
Keywords:
accounting standard, financial reporting, harmonization, Economic reality, economic consequencesAbstract
Literature reviews show that accounting is practiced within an implicit
theoretical framework composed of principles and practices that have been accepted by the
profession because of their alleged usefulness and logic, it is increasingly difficult to
convince the specialist of other disciplines merely by saying “this has been the practice”.
This difficulty is further compounded as accountants across the globe adopt different
accounting standards that best suit the economic climate in which they operate. This paper
focuses on the accounting theory formulation as tool to enhance uniform accounting
standards. The traditional and new approaches to accounting theory formulation was
discussed and the main recommendations were that a set of universal accounting standard
should be developed to back already existing international accounting standard and
harmonization of all local and international standards so that there will be a common basis
of financial reporting globally. The theories should be adhered to by Practicing Accountant
to avoid public scandal and confusion.
References
Ahmed, R. (2000). Accounting Theory Fourth edition Thompson Learning Publishers,
London.
Derek, F. (1985). Dictionary of Accounting Terms FT Publication. Ltd.
Edwards, J. R. (1989). A History of Financial Accounting London Routledge.
Glautier and Underdown (2001). Accounting Theory and practices 7
th edition Prentice Hall
Great Britain.
Hendriksen, E. (1977). Accounting Theory: Illinois Richard D. Irwin.
Hoskin, K. W. and Richard, H. M. (1986). Accounting and the Examination: a Geneology
of Disciplinary Power Accounting Organizations and society.
Jose, (2004) (Cited in :Www.Ladb.Org/Sds/Publication_3878_E.Htm) Retrieved 08/12/09
Littleton, A. C. and Zimmerman, V. K. (1962). Accounting Theory: Continuity and change;
Prentice Hall Englewood Cliffs N. J.
Mednick, (1991). (Cited in: www.wetherhead.cwru.edu) Retrieved 08/12/09
Nobes, C. and Parker, R.(2004). Comparative International Accounting: Harlow Pearson
Education Limited.
Porwal, L. S.(2001). Accounting Theory: An Introduction; New Delhi Tata M. Graw-Hall
Publishing Company Limited.
Watts, R. L. and Zimmerman J. L. (1979). The Demand for and Supply of Accounting
Theories:The market for Excuses: The accounting Review.
Www.Cbdd.Wsu.Edu/Kew/Content/Cdoutput/Tom505/Page9.Htm Retrieved 08/12/09
Www.Echeat.Com/Essay.Php?T=26969 Retrieved 08/12/09
