Regulatory Approach to Formulate Accounting Theory: Literature Study of Developed Countries

Arthur Simanjuntak, Dimita H. P. Purba, Iskandar Muda, Syafruddin Ginting

2018

Abstract

The purpose of Accounting is to provide user quantitative information, primarily on financial of an economic entity that is intended to be useful in decisions making for external and internal parties, among various other alternatives. The main purpose of accounting theory is to provide a basis for predicting and explaining accounting behavior and events. A different approach has been adopted by accounting researchers and academics to formulate accounting theory. The traditional approach being used for the formulation of accounting theory has applied one of the normative or descriptive methodologies, theoretical or non-theoretical approaches, deductive or inductive reasoning, and has a focus on the concept of "fairness", "social welfare", or "economic welfare". The traditional approach has developed into an eclectic approach and is now replaced by a more recent approach that stands out among them is a regulatory approach that can technically be considered as the embodiment of accounting standards. Accounting can be described as a business language. The development of Accounting Standards in Indonesia began in the period 1973-1984 by forming an Indonesian Accounting Principles Committee. By the end of 1994 the committee made an improvement of Indonesia's accounting principles. In order to apply the new accounting standard, by the end 1995 the Indonesian Accountants Association continue the improvement. Until the end of 2008 the number of IFRS adopted had only 10 IFRS standards from a total 33 standards, the Financial Accounting Standards continuing the improvement continuously, both completion and additions of new standards.

Paper Citation

in Harvard Style

Simanjuntak A., Purba D., Muda I. and Ginting S. (2018). Regulatory Approach to Formulate Accounting Theory: Literature Study of Developed Countries.In Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES, ISBN 978-989-758-432-9, pages 1179-1184. DOI: 10.5220/0009508811791184

in Bibtex Style

@conference{unicees18,
author={Arthur Simanjuntak and Dimita H. P. Purba and Iskandar Muda and Syafruddin Ginting},
title={Regulatory Approach to Formulate Accounting Theory: Literature Study of Developed Countries},
booktitle={Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,},
year={2018},
pages={1179-1184},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009508811791184},
isbn={978-989-758-432-9},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,
TI - Regulatory Approach to Formulate Accounting Theory: Literature Study of Developed Countries
SN - 978-989-758-432-9
AU - Simanjuntak A.
AU - Purba D.
AU - Muda I.
AU - Ginting S.
PY - 2018
SP - 1179
EP - 1184
DO - 10.5220/0009508811791184