Normative Accounting Theories

Kabir, M. H. 2005. Normative accounting theories. Dhaka University Journal of Business Studies XXVI (No. 1): 87-123.

30 Pages Posted: 5 Aug 2005 Last revised: 17 Jan 2016

See all articles by Humayun Kabir

Humayun Kabir

Auckland University of Technology

Abstract

This paper reviews five important works on normative accounting theory - MacNeal (1939), Paton and Littleton (1940), Littleton (1953), Chambers (1966), and Ijiri (1975) - with emphasis on recognition and measurement issues in accounting. It shows that there is a lack of agreement among these theorists on basic assumptions and hypothesized information needs of the users. Even where there is agreement on an assumption, different implications have been drawn therefrom by the concerned theorists. These differences lead to different recognition and measurement proposals. This paper also shows that many of the ideas in accounting that seemed to be novel were anticipated by these early theorists. Finally, it assesses the present accounting practice in the light of these theories.

Keywords: Normative accounting theory, accounting recognition and measurement

JEL Classification: M41

Suggested Citation

Kabir, Humayun, Normative Accounting Theories. Kabir, M. H. 2005. Normative accounting theories. Dhaka University Journal of Business Studies XXVI (No. 1): 87-123. , Available at SSRN: https://ssrn.com/abstract=765984 or http://dx.doi.org/10.2139/ssrn.765984

Humayun Kabir (Contact Author)

Auckland University of Technology ( email )

AUT City Campus
Private Bag 92006
Auckland, 1142
New Zealand
+64 21 08309355 (Phone)

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