Theories of Accounting: Evolution & Developments, Income-Determination and Diversities in Use

TL;DR

This paper explores the evolution of key accounting theories, including Income Determination and the Charge and Discharge Syndrome, highlighting their role in reducing fraud and emphasizing the need for clearer implementation standards.

Contribution

It provides an exploratory review of the development of fundamental accounting theories and discusses their application and importance in ensuring accurate financial reporting.

Findings

Theories aim to minimize fraud and errors.

Emergence of theories linked to asset protection.

Recommendations for clearer implementation standards.

Abstract

Accounting frameworks follow stipulations of existing Accounting Theories. This exploratory research sets out to trace the evolution of accounting theories of Charge and Discharge Syndrome and the Corollary of Double Entry. Furthermore, it dives into the theories of Income Determination, garnishing it with areas of diversities in the use of Accounting Information while review of theories of recent growths and developments in Accounting are not left out. The method of research adopted is exploratory review of existing accounting literature. It is observed that the emergence of these theories exist to minimize fraud, errors, misappropriations and pilfering of Corporate assets. It is recommended that implementation prescriptions of these theories by International Financial Reporting Standard Committee and Practicing Accountants should be adhered to and simplified so as to avoid confusing and scandalous reporting of financial statements