ABSTRACT
This chapter explores the definition of accounting principles given is not merely concerned with financial accounting. It is a peculiarity of modern accounting thought that financial accounting and management accounting are frequently segregated, as if they existed in two separate and watertight compartments. The more one reflects on the nature of the deficiencies in modern financial accounting, which have given rise to controversies in Australasia, North America, and the UK, the more it seems apparent that financial accountancy has lost touch with the needs of the modern world. Accounting Principles Board has only recently been set up. The only additional institution, not already in existence, is the Accounting Court. Empirical and speculative research would be conducted in the universities and in the research divisions of the professional institutes. As a result of such research, studies would be published and these would form the basis of debates within the professional and academic communities.
