Accounting education and change in financial accounting

Abstract

Nearly twenty years ago, both the American Accounting Association ( Statement on Accounting Theory and Theory Acceptance , 1977) and M. C. Wells ( The Accounting Review , July, 1976, 471–482) discussed the process of change in accounting. Based on T. S. Kuhn's ( International Encyclopedia of United Science , University of Chicago Press, 1970) outline of the revolutionary process, they both asserted that if change in accounting was to be realised this was going to be through a revolutionary rather than an evolutionary process but they both expressed their reservations on the readiness of accounting at that point in time. This paper discusses whether any improvements have been made in accounting in this regard in the intervening period. The concept of revolution is briefly outlined and the two more important “master symptoms” in relation to a revolution in accounting, namely the introduction of new accounting models, are then matched to produce various combinations of the accounting environment. The conduciveness of each of these backgrounds to the process of change in accounting is then assessed by reference to the experience of stated countries at different points in time. In the concluding part, recommendations are made regarding the importance of accounting education for the process of change in accounting.