An Inquiry into the Nature of Accounting

PART I—THE PROVINCE OF ACCOUNTING
1 INTRODUCTION
I General Attitudes to Accounting ................. 3
II Accounting and Economics ...................... 6
III Accounting and Law ........................... 9
IV Accounting and Management ................... 16
V Accounting and Government .................... 20
2 THE RELATION BETWEEN ACCOUNTING THEORY, ACCOUNTING DOCTRINE AND ACCOUNTING PRACTICE
I On the Dangers of Definition ................... 24
II The Historical Perspective ...................... 27
III The Analytical Perspective ....................... 31
IV A Suggested Classification of the Province of Accounting .......................................... 84
3 THE BASIS OF ACCOUNTING THEORY
I The Nature of Accounting Phenomena ............ 36
II Basic Social Relationships ....................... 38
III Accounting Measurement ....................... 42
IV Proprietorship ................................. 44
V The Minimum Requirements of Accounting ...... 47
4 THE FIELD OF ACCOUNTING DOCTRINE
I The Object of Accounting Doctrine .............. 49
II The Basic Features of Accounting Doctrine ...... 52
III The Criteria of Good Accounting .................. 58
5 THE SIGNIFICANCE OF ACCOUNTING PRACTICE
I The Pervasiveness of the Accounting Function ..... 66
II The Functions of Accounting ................... 72
III Sources for Empirical Study in Accounting ........ 78»
6 POSTSCRIPT To PART I ................................ 81
PART II—GENERAL ACCOUNTING THEORY
7 INTRODUCTION ....................................... 85*
8 THE UNIT OF ACTIVITY
I Events ......................................... 87
II Ventures ...................................... 89
III The Matching Procedure ........................ 95
IV The Concept of Coherence ...................... 98
V The Time Period .............................. 101
9 THE UNIT OF OUTLOOK
I Introduction ................................. 107
II The Entity Theory ........................... 109
III The Proprietary Theory ....................... 116
IV The Two Viewpoints Compared ............... 118
V The Fund Theory ............................ 146
VI The Managerial Viewpoint .................... 151
VII The Commander Theory ...................... 162
VIII The Commander Viewpoint ................... 167
10 THE UNIT OF MEASUREMENT
I Basic Characteristics of a Unit of Measurement . . . 175
II The Social Unit of Measurement ................. 179
III The Measurement of Resources .................. 180
IV The Possibility of an Alternative Unit of Measurement ........................................ 183
V The Problem of Price-Level Changes ............. 186
11 THE NATURE OF THE ACCOUNTING PROCEDURE
I The Unit of Record ............................ 211
II The Characteristics of Double-Entry .............. 215
III Reporting ..................................... 219
IV Interpretation .................................. 225
PART III—OPERATIONAL PROBLEMS
12 INTRODUCTION ...................................... 231
13 THE PROBLEM OF PROFIT
I Various Concepts of Profit .................... 232
II Profit on a Venture ........................... 235
III Periodic Gain ................................ 241
IV Profit, Gain and Income ....................... 244
V Profit as a Result ............................ 249
VI Profit as a Reward ............................ 258
VII The Destination of Profit ..................... 263
VIII The Concept of Real Profit .................... 270
IX When Does Profit Arise? ................ .. ..... 277
14 THE PROBLEM OF CONTROL
I The Meaning of Control ........................ 283
II Ownership Control ............................ 285
III Management Control ......................... .. . 294
IV Creditor Control .......... ..................... 299
V Employee Participation ........................ . 302
VI Community Control ............................ 306
15 THE PROBLEM OF VALUATION
I A Dilemma .................................... 310
II The Subjectiveness of Valuation .................. 314
III Value, Equality and Equivalence ............... 317
IV Valuation and Measurement .................... 321
V Valuation and Published Reports ................ 325
VI Tagging ....................................... 334
16 THE PROBLEM OF COMMUNICATION
I Accounting as Communication .................. 348
II The Nature of Communication .................. 349
III The Communicative Process in Accounting ........ 355
IV The Accountant’s Problem in Communication ...... 358
APPENDIX To 16: THE NATURE OF EXPLANATION .............. 361