Understanding Financial Accounting Theory

Financial accounting theory is one of the major courses in the advanced accounting program at almost all institutes of higher learning, domestic and international. In the main most financial accounting theory courses cover such topics as the background and history of accounting and the rise in accounting thought amongst accounting academicians and practitioners alike in their persistent search for a theoretical underpinning to support the practice of accounting. This book covers similar topics and also includes a topic on Islamic Accounting.

To help students follow the course, the book follows a historical approach showing how accounting developed beginning with the nature of accounting during the ancient civilizations right through to the Middle Ages and the development of the double-entry system, the rise of the joint-stock companies following the emergence of the Industrial Revolution in the UK, the beginning of accounting regulations and the search for an accounting theory right to the present day. The book ends with discussions on several ongoing issues in present-day accounting.

This book is planned to cover topics that are just enough for a two-semester/one year course that should enable students to get a good grasp of accounting theory. A proper understanding of accounting theory is important to support graduate confidence to face the real situation later in the accounting workplace.

This book is written in simple English to fill the needs of non-English speaking students to properly follow the course.