Accounting theory is concerned with developing a coherent framework of principles to guide accounting practice and the development of new procedures. There are various approaches to formulating accounting theory, including the deductive approach which moves from general propositions to specific principles and techniques, and the inductive approach which analyzes observations to derive general principles. Effective accounting theory considers semantic issues regarding symbolic meaning, and syntactic structure and logic.
Accounting theory is concerned with developing a coherent framework of principles to guide accounting practice and the development of new procedures. There are various approaches to formulat…