This book has been written to provide readers with a balanced discussion of different theories of financial accounting. Various theories for and against the

regulation of financial accounting are critically discussed and various theoretical perspectives are introduced to explain different types of voluntary reporting

decisions. The book also describes and evaluates the development of various normative theories of accounting, including various approaches developed to

account for changing prices, different normative perspectives about the accountability of business entities, as well as various issues associated with the

development of conceptual frameworks for financial reporting. The book also emphasises the role of a number of factors in explaining both international

differences in accounting and the recent efforts towards, and the obstacles to, the globalisation of international financial reporting standards.

Apart from providing explanations for why or how organisations should disclose particular items of financial information, the book investigates research that

explores how or whether people at an aggregate and individual level demand or react to particular disclosures. Reflecting the growing relevance of social and

environmental accountability and reporting issues to students, government, industry and the accounting profession, social and environmental accountability and

reporting issues are discussed in depth. The book also provides an insight into the role of financial accounting from the perspective of a group of researchers who

are often described as working from a ‘critical’ perspective.

Divided into twelve chapters sequenced in a logical order, this book provides the basis for subjects or units that investigate financial accounting theory.

Alternatively, the book can be used as a key text for more general courses that include coverage of aspects of financial accounting theory. The entire book could

realistically be used in the average eleven- to thirteen-week university term, with chapters being studied in the sequence in which they are presented. Because it

presents a balanced perspective on alternative and sometimes conflicting theories of financial accounting, it also provides a sound basis for readers contemplating

further research in different areas of financial accounting.