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Summary

Hilda introduces an accounting theory lecture, covering historical perspectives and accounting standards. The lecture is divided into six discussions, starting with the overview of accounting theory, its definition, and development from the 1400s to modern times. It explores the evolution of accounting principles and the role of standard-setting bodies, aiming to evaluate current practices and guide the development of new procedures.

Takeaways

• 📚 Hilda introduces herself as a lecturer from the Accounting program at Telkom University's Faculty of Economics and Business.
• 🌏 The course code for the Accounting Theory subject is EAJ2J3.
• 📈 The lecture will cover historical perspectives of accounting and the development of accounting standards.
• 📝 The material is divided into six discussions, starting with an overview of accounting theory.
• 🔍 The first sub-topic is the definition of accounting theory, which is a coherent set of principles and concepts forming a general framework for the field.
• 📖 Hendrikson's definition of accounting theory is used, emphasizing its role in evaluating and guiding accounting practices.
• 🔑 Three criteria for theory acceptance are mentioned: explanatory and predictive power, theoretical and empirical structure, and practical implications.
• 📊 Accounting initially developed as a tool for recording activities and is considered a modern science compared to physics and mathematics.
• 🎯 The purpose of accounting theory is to explain current accounting practices and provide a basis for future practice development.
• 📚 Passioli's work on double-entry accounting focused on practical documentation rather than underlying theory.
• 📘 Chambers views accounting as a practice developed in response to practical needs rather than systematic and intentional thinking.

Q & A

What is the main topic of the lecture?

The main topic of the lecture is accounting theory, specifically covering its historical perspective and accounting standards.

Who is delivering the lecture, and where are they from?

The lecture is delivered by Hilda from the accounting program at the Faculty of Economics and Business, Telkom University.

What are the six key periods of accounting development mentioned in the lecture?

The six key periods are: 1) Pre-theory (1400-1800), 2) Pragmatic Accounting (1800-1955), 3) Normative Accounting (1956-1970), 4) Positive Accounting (from 1950 to today), and the recent developments in accounting theory.

How does Hendrikson define theory in general?

Hendrikson defines theory as a coherent set of principles, hypotheses, and conceptual frameworks that form a general reference structure for a particular field.

What is the specific definition of accounting theory according to Hendrikson?

Accounting theory is defined as a logical reasoning structure in the form of broad principles that provide a general framework to evaluate accounting practices and guide the development of new practices and procedures.

What are the three criteria for a theory to be accepted?

A theory is accepted if it: 1) explains and predicts reality well, 2) is well-constructed both theoretically and empirically, and 3) has implications that are widely accepted.

Why is accounting considered a modern concept compared to mathematics and physics?

Accounting is considered modern because it developed later as a response to practical needs, while disciplines like mathematics and physics existed much earlier.

What is the primary purpose of accounting theory?

The primary purpose of accounting theory is to explain current accounting practices and provide a basis for the development of future practices.

Why does the lecturer mention Luca Pacioli’s double-entry accounting?

Luca Pacioli’s double-entry accounting is mentioned to highlight that early accounting writings, such as his, focused more on documenting practical techniques rather than explaining the underlying theories.

How does Chambers describe the development of accounting theory?

Chambers describes accounting theory as evolving primarily as a response to practical needs, often developed through practice rather than through deliberate, systematic thought.