What is Accounting Theory and its history ?
Accounting Theory can be defined as the sum of theories, methodologies, assumptions, frameworks and regulations that are widely used and implemented in accounting studies and accounting applications. The study and analysis of the accounting theory involves the complete review of the historical adoptions and foundations of modern accounting practices that are now being implemented to run accounting practices in the modern age. Accounting Theory also involves the study that how certain accounting principles and are analyzed and verified and then they are added to the regulatory framework of accounting that enables the financial reporting and financial analysis of a business entities or any other accounting entity.
The roots of accounting as a financial discipline are quite old and rooted back to the 15th century. The accounting fundamentals, theory and principles are greatly being evolved with the evolution of business, finance and with the development of various economies around the globe. Accounting Theory is not a stagnant topic or a still subject as it is continuously evolving along with new ways of doing business, new ways of marketing, more effective administration and new ways of making money. With the advent in Accounting Theory new methods and new ways of introducing accounting principles, adding new technological gaps and new standards are being readily discover in accounting reporting standards.
With the help of international accounting institutions such as Accounting Standard Board Accounting Theory is applied with the business entities and corporations with new application techniques and application standards. Moreover with the help of Accounting Theory professionals like CPAs can help organization in implementing accounting standards.
Other Related Accounting Articles: