Theoretical Framework Summary

Here, we have examined the development of accounting from its earliest form as a recording activity to its present-day importance which stems from its objective of providing socio-economic information for decision making.

The history of accounting development reflects an ability to respond to changing social needs. Today, changing social attitudes combine with developments in information technology, quantitative methods and the behavioural sciences to affect radically the environment in which accounting operates. These changes have created a number of problems for the accountant. It is with these problems that this book is concerned.


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Read on: Accounting in a Changing Environment

Accounting in a changing environment

The process of change has had a dramatic impact on accounting research and accounting practice in recent years. The factors which have affected accounting may be identified as follows:

(1) Developments in quantitative methods and the behavioural sciences have shifted the focus of interest towards decision making. The increased importance of quantitative methods in the management of organizations has meant that the subject of management has become less descriptive and more analytical. Thus, it has become less concerned with describing management as... see: Accounting in a Changing Environment