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Publication Date

1993

Abstract

The objective of this study is to trace the influence of DR Scott's writings on the development of accounting theory and standard setting. Scott's deductive approach to the development of a conceptual framework for financial accounting and reporting was adopted by accountants on a piecemeal basis from the 1930s to the 1970s. This study traces authoritative pronouncements from the 1930s to provide evidence on Scott's forward looking ability and the influence of his ideas on the subsequent development of accounting theory. The social, economic, and political environment of the 1930s is described to show why a change in accounting standard setting was needed. The authors show that Scott envisioned the function of accounting as extending beyond mere recordkeeping, to include control of organizations relative to their cultural environment. Further, Scott's broad educational background is presented to show the breadth of Scott's ability to see accounting issues beyond bookkeeping issues. The findings show that Scott [1941] was among the first to develop a theoretical, deductive, normative framework to serve as the basis for accounting principles.

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