ABSTRACT
This chapter adds to the frame of reference required for the empirical investigation of Dutch reporting practices. It captures the intellectual background of Dutch financial reporting by describing the history of Dutch accounting regulation in the light of the development of thought and opinion on the respective roles of regulation and voluntary action. The chapter takes as its starting point the similarity in much of 19th century European company law, and sketch how, from this common basis, the Netherlands moved towards a distinctive position characterized by a comparatively light set of accounting regulations. Regardless of its origins or uniqueness, however, the abstention of the law in influencing the contents of financial statements left scope for other forces. The traditional view adhered closely to the letter of the law, which was based on the view that the role of financial statements was limited to safeguarding the interests of outsiders with a financial interest in the company.
