Financial Accounting TheoryCraig Deegan：财务会计theorycraig迪根.ppt

Financial Accounting TheoryCraig Deegan Chapter 1 Introduction to financial accounting theory Slides written by Craig Deegan and Michaela Rankin Learning objectives In this chapter you will be provided with evidence that shows that there are many theories of financial accounting the different theories of financial accounting are often developed to perform different functions, such as to describe accounting practice or prescribe particular accounting practices Learning objectives (cont.) theories, including theories of accounting, are developed as a result of applying various value judgements and that acceptance of one theory, in preference to others, will in part be tied to one’s own value judgements we should critically evaluate theories before accepting them What is a theory? ‘A coherent set of hypothetical, conceptual and pragmatic principles forming the general framework of reference for a field of inquiry’ (Hendriksen 1970, p. 1) Based on logical (coherent) reasoning, and not ad hoc in nature Accounting theories Accounting is a human activity It would seem illogical to study financial accounting (for example, the accounting standards) without also studying accounting theory Theories of accounting consider people’s behaviour with respect to accounting information people’s needs for accounting information why people within organisations elect to supply particular 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 predict that the relative power of a stakeholder group will affect the accounting information it receives Overview of theories of accounting Many theories of financial accounting exist No universally accepted theory of accounting different perspective