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The Influence of Accounting Theory on the FASB Conceptual Framework*

Historical Developments in the Accountancy Profession, Financial Reporting, and Accounting Theory

ISBN: 978-1-80117-805-1, eISBN: 978-1-80117-804-4

Publication date: 15 November 2021

Abstract

During the first half of the twentieth century, “accounting theory,” developed primarily by accounting scholars and academics, provided the primary basis for the practice and teaching of financial accounting in the United States. Since the creation of the Financial Accounting Standards Board (FASB) in the early 1970s, the FASB conceptual framework has provided the primary basis for accounting standards setting as well as for the practice and teaching of financial accounting. While the purpose of creating a conceptual framework has been to develop an agreed upon set of concepts and principles to guide accounting standards setting, a related goal has been to reduce diversity in accounting practice and to move toward greater uniformity. This chapter traces the influence of accounting theory on the conceptual framework and explores some of the consequences of this influence.

Citation

Baker, C.R. and Persson, M.E. (2021), "The Influence of Accounting Theory on the FASB Conceptual Framework*", Baker, C.R. and Persson, M.E. (Ed.) Historical Developments in the Accountancy Profession, Financial Reporting, and Accounting Theory (Studies in the Development of Accounting Thought, Vol. 25), Emerald Publishing Limited, Leeds, pp. 51-66. https://doi.org/10.1108/S1479-350420210000025004

Publisher

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Emerald Publishing Limited

Copyright © 2022 C. Richard Baker and Martin E. Persson