From Accounting Theory to Conceptual Framework

Author:Prof. C. Richard BAKER, Prof. Alain BURLAUD

JEL:M 41

DOI:

Keywords:accounting theory, accounting standards setting organizations, institutional theory

Abstract:
Prior to the Second World War there were virtually no organizations dedicated to the establishment of accounting standards. During that period accounting theory was fundamental for the teaching and practice of financial accounting. In contrast, during the second half of the 20th century, national organizations of accounting standards setting bodies replaced accounting theory as a reference for teaching and practice. Today, the role of accounting theory and even the role of national accounting standards setting organizations has diminished in the face of the transcendence of the IASB and its conceptual framework. The goal of this article is to illustrate how accounting theory has progressively been replaced in favor of a conceptual framework, either implicit or explicit and what the consequences are of such an evolution.\r\n

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