Financial Accounting Theory, 5e, Craig Deegan, Positive & Normative Theories

The Author, Craig Deegan, explains that the new introductory accounting book was written to address what he felt was a deficiency in how the subject was being taught, noting that introductory accounting courses hadn’t significantly changed in decades.

He had a capacity and a responsibility to contribute to the field, driven by a passion for the project and a desire to make a positive change.

 

The Motivation and Philosophy Behind the Book

 

• Teaching Dissatisfaction: He was not happy with how first-year accounting was being taught at his university and many others.
• Need for Change: He believed the teaching methodology had not changed much in decades.
• Values-Based Approach: The book is “unapologetically values-based,” aiming to instill notions of responsibility and accountability in business students, particularly in light of global issues (“where the planet was heading”).
• Student Engagement: When trialed, the book was popular with students, making them realize that “accounting is really interesting,” opening their eyes to how “rich accounting was or is.”

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Key Differences from Other Introductory Accounting Books

 

The book has a unique structure and philosophy that distinguishes it from traditional texts:

1. Structure (Delayed Technical Focus):
   • It does not initially go into technical aspects like debits, credits, and straight into financial accounting.
   • Early chapters instead explore the notions of what is accounting, what is accountability, and what are the accountabilities of organizational managers.
2. Emphasis on Sustainability and Accountability:
   • It places a strong emphasis on sustainability.
   • It uses a Four-Stage Accountability Model throughout the chapters.
   • It employs reflective questions to get students to think critically about the concepts being discussed.
3. Broadened Scope:
   • It promotes the acceptance of a diversity of views on organizational accountability and responsibility.
   • It instills a broader notion of accountability for resources, including both financial and non-financial resources.
   • It considers a broader notion of costs and values beyond the traditional financial accounting view of expenses and income.
4. Innovative Case Study:
   • The book includes an innovative, single-organization case study that evolves as the students progress through the chapters. They apply their new knowledge from each chapter to this organization.
5. Accounting as a Practice:
   • It emphasizes that accounting is both a technical and social practice, promoting the view that it is thought-provoking and exciting.

 

Craig Deegan’s Financial Accounting Theory, 5e is the definitive, up-to-date resource for understanding the evolution of accounting principles. This comprehensive text provides both concise coverage of traditional theories and an in-depth exploration of the contemporary concepts shaping the modern profession.

 

Are you struggling to bridge the gap between financial reporting standards and the real-world impact of accounting practice? Mainstream textbooks often overlook the critical discussions that challenge the status quo. In today’s complex global environment, a true understanding of accounting requires moving beyond simple rules and embracing the underlying theoretical debates, from the limitations of the conceptual framework to the rise of extended corporate responsibility. Students need a text that empowers them to think critically about how organisational responsibilities and corporate accountability and accounting practice influence disclosures.

 

 

• Accountability-Driven Approach: Features a NEW Chapter 2 with a four-step accountability model, exploring the critical link between corporate governance and financial reporting.
• Contemporary Coverage: Provides in-depth analysis of emerging concepts, including Integrated Reporting, public sector accounting, and critical perspectives of accounting textbook discussions that encourage debate.
• Valued by instructors and students alike for its straightforward explanations, numerous practical examples, and engaging ‘Check your understanding’ acti

 

This fifth edition of Financial Accounting Theory Deegan 5e maintains its position as the market leader by comprehensively covering all major theoretical perspectives. The text is logically sequenced, beginning with a detailed introduction to accounting theory and an examination of the various forces, including politics and culture, that regulate the financial reporting environment. You will gain a clear mastery of the core theoretical models.

The discussion moves seamlessly between the foundational elements of accounting theory. Students will master the core distinction between positive accounting theory, which aims to explain and predict managerial behaviour, and the prescriptive nature of normative accounting theories, like those used in conceptual framework projects. The book dedicates substantial space to measurement issues, including accounting for the effects of changing prices and markets, a topic often overlooked in introductory texts.

A significant strength is the extensive focus on systems-oriented theories. The text features in-depth chapters on social and environmental accountability and reporting issues, covering the theories that underpin why and how companies voluntarily disclose information on their sustainability performance. This section includes detailed discussions on the Global Reporting Initiative (GRI) and the pressures of stakeholder power. Furthermore, the 5th edition provides focused insight into the complexities of fair value public sector accounting, ensuring you are prepared for the diverse career paths available in modern accounting. The inclusion of new content reinforces how different perspectives of ‘accountabilities’ impact the way accounting is performed and the specific theories researchers choose to apply. Deegan financial accounting conceptual framework analysis is interwoven throughout, providing context for the regulated environment. For those undertaking further research, this text’s comprehensive internal referencing guides make it an indispensable resource for exploring contemporary accounting theories text.

 

 

Prepare yourself for the intellectual challenges of modern accounting. Don’t just learn the rules; understand the theories that underpin them. Trusted by leading universities, Financial Accounting Theory, 5e will challenge you to think beyond the financial statements. Take the next step in your professional development.

Discover the theories that are reshaping the corporate world. Click ‘Buy now’ to secure your copy today!