ABSTRACT
A Statement of Basic Accounting Theory (ASOBAT) The fifth statement by the American Account ing Association (AAA) on the development of accounting principles, standards, and theory was published in 1966 by an AAA committee chaired by Charles T. Zlatkovich. This state ment marked a significant change from its pre decessors in that the committee broadened the scope of accounting to an information system for the entity, whether it be profit or nonprofit oriented. The committee also included an internal-management focus as well as an external user focus. The committee stressed four basic standards, which have become well used in the literature: relevance, verifiability, freedom from bias, and quantifiability. It also stressed the im portance of communication.
