This book explains the content of the Accounting `Standards Board's new Statement of Principles for Financial Reporting' in an accessible language, specifically for the student of accounting and finance.

Financial accounting theory has numerous practical applications and policy implications, for instance, international accounting standard setters are increasingly relying on theoretical accounting concepts in the creation of new standards; and corporate regulators are increasingly turning to various conceptual frameworks of accounting to guide regulation and the interpretation of accounting practices. The global financial crisis has also led to a new found appreciation of the social, economic and political importance of accounting concepts generally and corporate financial reporting in particular. For instance, the fundamentals of capital market theory (i.e. market efficiency) and measurement theory (i.e. fair value) have received widespread public and regulatory attention. This comprehensive, authoritative volume provides a prestige reference work which offers students, academics, regulators and practitioners a valuable resource containing the current scholarship and practice in the established field of financial accounting theory.

The Internet bubble has collapsed and the largest bankruptcy in US history, Enron, has made the call for greater transparency in financial reporting more important than ever. Andrew Higson draws attention to what is a 'true and fair view' in reporting and critically examines accounting theory and modern practice.

Updated and revised, Accounting Theory helps readers build strong critical thinking skills and a sound theoretical background in order to evaluate accounting practice in today's increasingly global world economy.

This second edition of a book first published in 1983 features three new chapters on the conceptual framework of financial reporting currently being developed in Australia. Other chapters have been rewritten or updated. Includes subject and author indexes.

Presents complex materials in a clear and understandable manner. Incorporating the latest accounting standards and presenting the most up-to-date accounting theory from the top academic journals in accounting and finance throughout the world.