International Journal of Accounting Research

Abstract

A Need for Theorizing Corporation: An Accounting Perspective

Al-Adeem KR

While the precise moment when accounting was first used remains unknown, one can speculate that the emerging need for economic systems necessitated the invention of technologies such as double-entry bookkeeping and the creation of new business models to determine the purpose of accounting at a given time period. Corporations as a business model may not be served by the conventional role of accounting, which caters to the needs of engaging in other businesses forms. Accounting principles such as a historical cost valuation basis can only be justified in reference to accounting rules but not necessarily theories. A corporation needs to be theorized and properly conceptualized from an accounting perspective so that the role of corporate accounting may be suggested or an existing one adopted.