UNDERSTANDING ACCOUNTING THEORY
UNDERSTANDING ACCOUNTING THEORY Financial accounting discusses how procedures, methods, and techniques for recording financial transactions are carried out to achieve the stated financial reporting objectives. Accounting standards provide guidelines (definition, measurement, assessment, recognition, and disclosure of elements or items of financial statements) accounting treatment of an event. Accounting that is practiced in a country actually does not just happen scientifically, but the practice that is carried out is designed and developed intentionally to achieve certain social goals. And accounting practices are influenced by environmental factors (social, economic, political). Therefore, the structure and practice of accounting will differ from one country to another (the difference arises because the structure and practice is adapted to the conditions of the country, where the accounting is carried out). In this chapter, accounting theory will discuss ...