Financial Reporting from the Reference Theories’ Perspective
AbstractInternational accounting standards are underpinned by a normative approach of accounting, in the sense that these are based on conceptual accounting framework assimilated by a theoretical framework. The conceptual framework’s development is based on a priori theory, initiated by Chambers, in his article published in 1955, where he defends the need for a theory of practical accounting an a detachment from descriptive theories of an inductive approach. Developing the accounting standards on such theories is the result of deductive logic, while national regulations are based on an inductive approach. Furthermore, the wording of the national regulations concerning consolidated or social accounts is not explicitly dedicated to the privileged users of financial and accounting information. The clear position of the IAS/IFRS conceptual framework, directed to investor, places the international accounting model to the basis of agency theory.
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Bibliographic InfoArticle provided by Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest in its journal Knowledge Horizons - Economics.
Volume (Year): 6 (2014)
Issue (Month): 1 (March)
Financial reporting; accounting model; International Accounting Standards; conceptual framework; agency theory; normative theory;
Find related papers by JEL classification:
- M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting
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