Accounting Theory

University of Wollongong

Research Online

Faculty of Business - Accounting & Finance Working Papers 2006 Faculty of Business

The Critique of Accounting Theory

M. Gaffikin

University of Wollongong, gaffikin@uow.edu.au

Publication Details

This working paper was originally published as Gaffikin, M, The Critique of Accounting Theory, Accounting & Finance Working Paper 06/25, School of Accounting & Finance, University of Wollongong, 2006.

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06/25

University of Wollongong

School of Accounting & Finance

The Critique of Accounting Theory

Working Papers Series

Michael Gaffikin

School of Accounting & Finance University of Wollongong Wollongong NSW 2522 Australia Tel +61 (2) 4221 3718 Fax +61 (2) 4221 4297 eMail george@uow.edu.au www.uow.edu.au/commerce/accy/

The Critique of Accounting Theory

Michael Gaffikin*

School of Accounting and Finance, University of Wollongong, NSW 2522

In previous papers (Gaffikin 2005a, 2005b, 2005c, 2006) the discussion has examined accounting as a science, with attempts to employ a scientific methodology; as a purely technical expression of economic theory, heavily dominated by research in finance; and as part of “law”, albeit law (regulation) heavily influenced by dominant economic and political ideology. That discussion revealed that all these perspectives have suffered from severe shortcomings. Fortunately, there are other perspectives on accounting which may prove more fruitful and some of these will be discussed in this paper. A common element in many of these alternatives approaches is to view accounting as a social science. Social Science A few hundred years ago there were disciplines referred to as natural philosophy and moral philosophy. The former evolved into the natural sciences, the latter into the social sciences. However, like...