Accouting

The International Accounting Standards’ Board (IASB) is an independent, private sector body, which aims to set and implement the International Financial Reporting Standards (IFRS). There are presently over 100 countries which authorise corporations to act in accordance with the IASB standards. The IASB operates under the supervision of the IFRS Foundation. (Business Dictionary, 2016) The aim of this theory is to present explanations for the observed practice and additionally foretell unnoticed accounting occurrences. Additionally, Ahrens and Chapman (2006, pg. 821) define theory ‘as a set of explanatory concepts, useful for addressing the research question.’

Accounting can be integrated with those regulations concerned with the features of human society, due to the fact that it is a “system of thought” created by individuals to help decision making processes and effect behaviour. (The Critique of Accounting Theory, Gaffikin, M., 2006, pg 2) Accordingly, a social constructionist system, rather than a realist outlook, it would appear to be a more suitable foundation for conceptualising accounting. Consequently, rather than trying to re-establish the processes of natural sciences, it would be more correct that accounting rely on methods that are familiar with the human aspects of the regulation rather than assert a rational status similar to the natural sciences. Unfortunately, accounting researchers have been relatively slow in recognizing it, this is apparent in the deep connection of the neo-empirical investigation programs over the last few decades. There is some certainty in the observation that accounting is still a somewhat ‘young’ academic discipline and up to now has not fully displayed the development of self-contemplation and understanding. Up until present it has been content to accept the position of being a sub-discipline of economics. In accordance to the article, The Critique of accounting theory (2006),