Research on the institutional design of accounting systems: Theoretical and methodological considerations

Abstract

Subject. The article discusses rules, ethical principles for the emergence of institutional design of accounting systems and their distinctions. Objectives. The study identifies and evaluates how ethical principles will influence the institutional design of the national accounting system. We also provide hands-on advise on the use of its constituents. Methods. The study is based on general and special methods of research, such as theoretical principles of the institutional theory, dialectical method, methods of abstract research, logic method, systems analysis, generalization, classification, comparative analysis and synthesis of data. Results. I analyzed general methods of accountancy and sorted comparative characteristics inherent in the establishment of the accounting process given there is a limited number of accounting methods and accounting judgments, limited room for the artificial manipulation of data and transactions, prohibition to depart from effective rules for the institutional design of accounting systems that stemmed from the existing moral and ethical principles. I substantiated the content of moral and ethical principles in the concept of law and their use in accounting, considering that they unveil key dealing restrictions. The article sets forth the procedure for making them, determining how they can be practiced across jurisdictions in accordance with the existing macroeconomic development traits. Conclusions and Relevance. What really matters for the development of accounting is an opportunity for business to continue their usual working process during crises and under pressure of the external market. In such circumstances, it is crucial to exclude unreasonable expectations of accounting users in case of risk events which do not result from corporate operations. What else deserves further research is a variety of accounting models that exist worldwide, rather than characteristics of the accounting system that we spotlight. As the accounting system evolves and gets more refined as an inseparable part of a greater accounting system, cross-disciplinary approaches become more and more relevant, since they blend some scientific visions. The findings can be used in the theory of accounting development.