The Ideological and Accounting Thoughts in Accounting Knowledge Development
Dr.Maher A. Al-Shmam
Department of Accounting,
College of Administration and Economic,
University of Mosul, Mosul, Iraq
Dr. Ahmed M. K. Abdulhafedh
Department of Accounting,
College of Administration and Economic,
University of Salah Alden, Iraq
Abstract:
This paper aimed to revive the big debate on the of accounting knowledge to reach up the build and to develop the theory of accounting and preliminary review the most critical ideological in accounting thoughts includes the intellectual ideologies, professional ideologies, and environmental ideologies related to the contradictions and differences in views on the basics of accounting, and which are impacted on the formulation and construction of the accounting theory. Thus, this paper is theoretical and provides theoretical arguments based on a critical approach to try to answer the main research concern, which is why the idea of a set of intellectual, professional, and environmental ideologies prevented the existence of an acceptable and unified accounting theory?Many researchers opinions support thisand theorists in accounting around the worldthat lead to the absence of accounting theory with this description has its repercussions and adverse effects on the accounting information system where it works this system as an open system it has affected by on objectives, characteristics, and elements by the deficiencies and deficiencies of the accounting theory, which is the basis on accounting applications are built to organize and prepare the outputs of the accounting information system.
Keywords: intellectual ideology, professional ideology, and environmental ideology, and accounting theory
Introduction
The current paper is an attempt to revive the debate on the subject of accounting knowledge to reach build up and developing the theory of accounting and an attempt to revive this topic, which has become almost forgotten, as the researcher believes that the debate about the accounting theory must always be renewed, especially since there are many ideologies that have emerged and will it continuously appear constantly rotating the wheel of economic life and the continuous development in the accounting environment, so most research opinions agree that the development of accounting has always been a response to the economic and social changes taking place based on the influence and influence relationship that the accounting relates to its environment, which is what has a weakness in accounting, as the development of accounting should not be limited to being in response to economic and social changes, but must also be linked to the self-need for accountability, which calls for reconsideration of the ideologies that have affected the accounting thought and that stand in the way of owning accounting theory.
Thestudy will represent the idea of a set of intellectual, professional, and environmental ideologies that prevented and prevented the existence of an acceptable and unified accounting theory, which is supported by many opinions of researchers and theorists in accounting around the world, and that the absence of accounting theory with this description has its repercussions and adverse effects on the accounting information system. This system works as an open system affected by its objectives, characteristics, and elements by the shortcomings and deficiencies of the accounting theorybased on which accounting applications are built to organize and prepare the accounting information system's outputs.
First: the intellectual ideologies
1: The Continuation versus changes:
For long decades, accounting knowledge has been characterized by slow, conservative, and non-revolutionary changeas it is a social science that depends in its structure on a large group of inherited customs, traditions, and practices (after their practical utility has been proven) on the one hand and the conservative attitude of many accountants who are concerned about what change might lead to on the other hand. However, the rapid changes that have occurred (since the beginning of the last decade of the last century), and are still occurring in the accounting work environment, have clear implications for accounting knowledge, as many of the currently existing accounting concepts, methods, procedures and practices were not previously known to the international accounting community, which is what indicates the stage of development that accounting is undergoing, which is expected to continue in the future in response to changes in its environment and acceleration of the rate of change from its usual state, and an attempt to move away from conservatism and slowness as a necessary response from the accounting community to keep pace with those changes and the increasing demand from users who wish to obtain Financial information with more excellent utility and access to accounting knowledge to a degree that allows it to respond more quickly to challenges For emerging problems, the dynamic nature of accountability and its ability to change is what will enable it to maintain its importance in providing useful information and the ability to increase the usefulness of this information in the future. Thus, The nature of accounting and its changing interactive role with its environment is the primary driver and driver of the accounting response to the group of public and private needs of practitioners on the one hand, and for users of financial reports that are considered the final product of accounting on the other hand, which requires reactions from the international accounting community to respond to these changes by changing its operations And its techniques according to changes in forces and external factors affecting them (Hopwood , 1987 : 211).
However, Change is a necessary characteristic of building continuity and prosperity. It is the antithesis of continuity that stands in the barrier between accountability and its existence, development, and growth in a manner compatible with its environment. Here the conflict appears where the fluctuation between the concepts of continuity and change has an impact on the attempts to formulate and build the accounting theory through:
First, the conflict between the two sides of the intellectual argument in accounting about the necessity of stillness and continuity under the pretext of fear of unknown change and preservation of knowledge accumulation on the one hand, and between the necessity of change to ensure development and growth in harmony with the environment on the other hand has cast a shadow on the attempts to formulate and build the theory of accounting, as nature The dynamism of accounting and its ability to adapt to the new roles required of it to play is a unique and distinctive feature of accounting, and the lack of awareness of this feature was behind many opinions that confirm the impossibility of formulating and building an accounting theory, as these views see that this change is what prevents and will prevent reaching To an accepted and unified accounting theory on the pretext that the process of change is not easy, which is not supported by the researcher, since despite the fact that many of the changes that have occurred in accounting constitute a challenge to the basis of traditional accounting thought, the international accounting community, including the parties it includes, must always be prepared for continuous change, and that these parties must recognize that change in accountability is a continuous process that appears without limits, and that it is this change that will play an essential role in the formulation of the theory of accounting and its development, especially after the emergence of intellectual currents that took accounting to horizons compatible with rapid and successive changes and developments, dealing with and interacting with them, and the inability to impose restrictions on these patterns and intellectual currents and their changing trends that are consistent at times and diverging at other times, which is consistent with the opinion of (A. A. A.), which she expressed by saying (that accounting will continue to evolve in line with the changing environment surrounding accounting and based on this evolutionary perspective, The modification in the theoretical structure will continue in balance with the changes occurring in the environment). (SATTA , 1977 : 41)
Second, The need for change in accounting is linked to development, which is difficult to define in social knowledge areas (including accounting). Where although the accounting literature often describes the change in accounting as “evolution,” this term has multiple meanings, and connotations ranging from slow and gradual change And between rapid and revolutionary change, and the description of the change in accounting and its judgment is related to (development) in the first place need to define several criteria through which it is possible to decide whether the change is evidence of development.
Third, The willingness to experiment with new ideas and expose them to criticism with old ideas is a reassuring indication of the ability of accounting to grow in the face of challenging and complex economic conditions, as the expected change in the intellectual field in accounting cannot be produced without accepting the ideas and concepts related to the different needs and purposes of the affected and influential parties In accounting and its activities, which can only be achieved through a systematic and deliberate transformation, which is planned literally in a way that reduces errors and negatives that may result from the change process and in line with the interests and objectives of the parties expected to contribute to the change process in all its aspects and dimensions and so that the interests of these parties do not constitute an obstacle to the change process, which leads to the generation of modified, developed and compatible ideas, which in turn will lead to the creation of an accounting theory that can be described as complete and final.
2: Science versus profession
From reviewing the definitions of accounting, and although accredited accounting bodies issue them, they seem to represent concepts resulting from limited or narrow-minded visions that are not based on a comprehensive cognitive or logical basis or perspective, which generated a split of opinions in the accounting community between a supporter of this trend and opposes it, which led to the emergence of three main views or trends:
First opinion:
This view is based on the fact of accounting deals with economic and social phenomena that are a product of human behavior, unlike natural sciences, which deals with natural phenomena capable of identifying, measuring, and predicting. Accordingly, accounting does not go beyond being a (profession) or a service activity that serves practical application procedures. The process of measurement and delivery of accounting information is subject to a set of environmental influences, including the desires of the influential parties affected by this work's results. They thus oppose counting it (accounting) as a science that has an independent theory, including the goals, concepts, assumptions, and principles it contains. The owners of this opinion are based on the basis that accounting has already been established. Based on a set of methods, methods, or technical procedures that have proven their validity and usefulness in practical application in specific accounting fields and sub-accounting fields, and that these fields and subfields arose in most of them from a set of practices or procedures that accountants carry out in their practical lives to become these fields Subfields will later be a fertile field for researchers in accounting to take them to new fields by trying to frame, structure and organize these practices for Achieving a fundamental goal is to improve these practices and make them useful for different groups of users. As a result, they suggest that the accountant's priority is the orientation and above all towards organizing the accounting work and solving practical application problems and that accountants are taught the necessary accounting skills and practices to be professional and experienced with this. It makes them able to better understand these applications and make them face what may arise in the future of problems in the application, even if at the expense of the intellectual side. Thus, the holders of this opinion add that theoretical research in the philosophy of accounting is nothing but a waste of time and that it does not benefit in any way in developing accounting because they firmly believe that its development is due to economic, legal, and administrative factors that accountancy does not possess except to meet its needs and that accounting principles and standards are nothing but instructions for the practice of the existing or prevailing process at a stage. (Judge and Hamdan, 2013: 73)
Second opinion:
The authors believe that accounting is a stand-alone science that consists of multiple levels of abstractions and generalizations. It is science-based, mainly on measuring economic units' financial events and communicating measurement results to users. Therefore, the nature of the theory associated with this science and its role is crystallized according to the identification of the axes of the science of measurement and connection (the good, 2009: 38), and that it is necessary to pursue research to develop the theory of accounting. According to (Matuz, 1963, 317–325) (Accounting is a social science and it has the characteristics of social sciences, and it cannot be acquired through scientific discussions, but rather through continuous and careful research, which requires exerting mental and continuous effort by supporting ethical standards that fit the cases in which it is being studied) Therefore, the holders of this opinion suggest that accountants should be taught the broader intellectual or theoretical perspective about what accounting is trying to achieve in terms of objectives and that accountants should be motivated to develop critical thinking about the field of accounting and the dynamic changes in itin a manner that makes them ready to face developments and reach better policies.
Third opinion:
The holders of this opinion take a middle position between the two previous opinions, as accountancy is seen as a science and a profession at the same time. The owners of this opinion rely on the basis that the accountant works to record the events that have occurred, even if his job is also to discover facts to record them, which must be scientific in His method, but presenting these events in the accounts must adopt the technical nature that is based on inherited professional practices and procedures.The question of whether accounting is a science or not has remained without a sufficient and definitive answer. However, many opinions believe that accounting as we know it today meets the standards set for defining science, namely:
A- To be a structured and classified field of knowledge.
B - based on one basic theory or a set of fundamental theories and a set of general principles
C - the ability to express knowledge quantitatively.
D- It allows foreseeing and controlling future events if the appropriate conditions are available for them.
However, on the contrary, many opinions believe that it is impossible to rely on the models of studies used in the natural sciences to apply them to accounting since it (i.e., accounting) has distinctive characteristics. (Behling , 1980 : 483–490)
The fact that science and profession cannot be separated from the historical perspective of the development of science confirms that the contribution of the professional (technical) aspect in laying the foundations for many sciences and their development cannot be overlooked, and this is what can be measured on accounting, as accounting was born as a profession and art of practical practices. It developed historically and gradually to go towards being an independent science, whereby, according to (the experimental method),
2-: Historical cost versus fair value:
There is a lack of agreement by many parties on the appropriateness and objectivity of the proposed bases for measurement and the feasibility of converting to them and the lack of agreement on the method of disclosure of the effects of these biases in the financial reports. The international accounting community has continued to search for that basis within the scope of seeking to find the most appropriate and objective alternative. Furthermore, the academic and professional debate continued to determine the basis of accounting measurement that can achieve the relevance and objectivity in measurement and through which the gaps resulting from the application of the historical cost can be covered so that this controversy reaches its extent in the wake of the financial scandals (2002 AD), where the Markets and Securities Authority was formed ( SEC) A committee whose goal is to answer a fundamental question whether the accounting information produced according to the accounting standards and the historical cost basis can form inputs to evaluate the economic unit so that the committee’s work ends with reaching a vital conclusion, it is content. The evaluation of economic units in the financial market depends primarily on future profits and their cash flows. The beneficiaries are looking (based on multiple field studies) for information to predict such changes. According to the accounting standards (at the time), the financial reports are unable to give the beneficiaries such information. Therefore, the committee proposes that the current disclosure be associated with a determination of the fair value of the assets as well as the financial indicators and an analysis of the income components (L. Thompson, 2002: 113-123), and as a result, and upon the request of the Securities Commission (SEC), the Financial Accounting Standards Board (FASB) began studying ways to measure and disclose fair values of assets and ended on 6/15/2005. To the issuance of the fair value measurement project (Al Hamid, 2009: 694), which prompted acceptance by professional and scientific societies in accounting to settle the opinion of these bodies in the end because the fair value basis or approach is the best alternative to the historical cost basis for evaluating a set of reporting elements and items. Financial (financial instruments, assets or property, liabilities or liabilities, real estate investments, agricultural products, and insurance contract obligations) is the most beneficial basis for users to make investment decisions.
The interest in the concept of fair value as the best alternative (or complementary) basis for the historical cost basis has been evident through a series of directives and guidelines issued by organizations, councils, and professional associations, through which the fair value concept and methods for determining it when measuring is indicated, in addition to defining the necessary disclosure requirements in the financial reports, the results of this interest are evident in the issuance of:
The fair value, according to this definition, includes the market value. Thus, it is not limited to the positions of current and unavailable market inquiries. According to this definition, the focus is on the price delivered in exchange for selling an asset or the price paid in exchange for a commitment transfer and not the price that must be paid to acquire the asset Or the recipient in exchange for a nominal obligation. (Saleh, 2009: 20)
Determining the methods that management should use to estimate fair value in the event:
The market is active (availability of quoted prices in an active market for financial assets).
The market is inactive (there is no active market for the financial assets whose fair value is measured).
According to (Al-Sabri and Mardan) and (Agha), the interest shown by (FASB) and (IASB) in the concept of fair value is mainly due to the conviction of these two councils (the two councils responsible for setting accounting standards) of the advantages that can be achieved through applying the fair value basis. Through which it is possible to treat the deficiencies resulting from the application of the historical cost basis, and among these advantages:
Although the presentation of the fair value basis of the application came as a solution to the problems associated with applying the historical cost basis and its shortcomings, this could not stop the debate about the appropriateness, objectivity, and feasibility of the proposed alternatives to the historical cost, as many opinions go to the main reason for the debate about This basis is that it is based, in large part, on the assumptions that will be used by market participants when pricing assets and liabilities. According to this basis, the company does not need to sell a specific asset or settle a specific obligation at the measurement date to measure The fair value of that asset or liability. Thus, the fair value measurement is based on market participants ’assumptions and not based on a company's real sales.
Controversy over the role of the fair value basis in the occurrence of financial crises:
While some parties (60 members of the US Senate, many chairmen of banks and giant companies) pointed the finger at the basis of fair value and the flexibility available through its application and abuse of this flexibility and its wide exploitation when preparing financial reports before The administrations of economic units with the aim of inflating the value of their assets and their financial results (Stojikovic, 2011: 102) as the main reason for the occurrence of the financial crisis known as (the mortgage crisis) when these authorities stated that the application of the American standard (FASB 157) contributed to an unjustified inflating of real estate values and then The values of real estate loans granted by investment banks, and the consequent inflated value of real estate bonds, which led to the first episodes of the crisis with the collapse of the Lemans Brothers bank (Mr. Ali and Al-Mashhadani, 198: 2010), and that the application of fair value was behind the collapse of Enron. This company has resorted to using fair value extensively and extensively in long-term contracts for the supply of gas, as it has used its price estimates to manipulate the number of revenues generated (Mala and Chan d, 2012: 32), which, according to the opinion of these parties, justifies the necessity to stop applying all accounting standards for fair value (even if temporarily).
3-: The normative approach versus the positivist approach:
Within the change of environmental conditions, the development and complexity of economic transactions and the accompanying development in the economic and administrative sciences, and the increasing need of the administration for quantitative and financial information to help it in making its decisions, the deficiency of the professional practice perspective appeared in the conception of the scope and extent of accounting, which was the impetus for the launch of the scientific research movement in accounting on The form of individual studies or research (by individual researchers) or in the form of research projects (carried out by scientific and professional societies and organizations) in an attempt to develop accounting and transfer it from a mere practical art to recording the financial operations of economic units to a science that has its origins, philosophy, scope and connotations, by specifying Accounting objectives, functions, fields of work and identification of the beneficiaries of the product of its work, in what has been termed as accounting theorizing or theorizing of accounting knowledge, which was based in its analysis, discussion, assumptions and proof of it on one of the two prevailing approaches in accounting, namely the normative approach with deductive roots (Deductive), and the positivist approach, with inductive roots.
According to (1996, Rodgers & Williams, 2007, Hopwood,2007, Gaffikin, 2010, AL-Adeem, 2011, Badua et al., 2016, Erserim; Muhammad et al., 2019b; Mohsin etal., 2021b; Mohsin etal., 2021c) Research-based on the standard approach prevailed during the period (1926-1968) as a dominant approach to the trends of studies and research published in the most critical accounting journals (JAR,TAR), where these studies and research (whether those carried out by individual researchers or those carried out by societies, councils, and scientific and professional organizations) focused on trying to find a theoretical basis for understanding and justifying accounting practices and procedures by trying to define accounting goals and functions and laying down the basic principles that can be based It has to build the cognitive aspect of accounting (Archer, 1993: 62--122), in which it is assumed that it is applicable at all times and places if certain assumptions and specific uses are available, in addition to an attempt to ensure that accounting is independent of the sciences and other fields of knowledge for fear of being absorbed And the decay of accounting by the sciences and the dominating fields of knowledge at the time(Mattessich, 1972: 469--487)
This trend continued as a fundamental trend that was adopted by academic researchers in accounting until the mid-sixth decade of the last century, when accounting research represented an accumulation of the efforts of accountants (academics in particular) in their attempt to formulate and build an independent public accounting theory on the one hand, and a description of the prevailing accounting practices and suggest ways to improve On the other hand, these practices are based on reliance and focus on abstract normative and descriptive conclusion, which has provided much assistance to standard-setting bodies and professional accountants working in companies(Zeff, 1989: 159 - 176), which was approved by (AAA) (Accounting Principles Board) in the mid-sixties when it declared its tendency not to be satisfied with compiling only acceptable practices, and that it tends instead towards adopting the standard position towards the development of basic concepts in Accounting (Zeff, 1999: 95) considering that the accounting that is practiced is based in no small extent on the normative foundations and that the standard style of accounting theory is what suits the nature of accounting (Yu, 1976: 104), in addition to the conviction of the accounting community at the time that the standard theory of accounting It can take into account the dynamics surrounding the business environment to enable accountants to work productively in their community.
According to (Baker; 2017), accounting studies and research based on the standard approach have contributed to building many elements or components of the accounting theory currently known (objectives, assumptions, concepts, principles, basics of measurement) (Baker, 2017: 109-124) and among the most important of these are The studies include: (2010: 137, Kabir) - According to (Paton, W. A., 1922, MacNeal, Kenneth, 1939; Ivascu et al., 2021) Despite the generous contributions made by studies and research based on the standard approach during the period (1926-1968), it was not without criticism, as many criticisms were directed towards that approach, the most important of which (according to critics of this approach):
Accordingly, the number of studies and research that depend on the standard descriptive approach gradually decreased from accounting research. Over time, the published research in the (traditional) standard theory approached almost zero (with some exceptions). The research trend based on the standard approach generally disappeared from the literature. Accounting(Heck & Jensen, 2007: 109--142). In contrast, since the end of the sixth decade of the last century (1968AD), the agenda of accounting studies and research published in the most critical accounting journals (CAR, AOS, JAR, TAR) has shifted towards relying on the positive (favorable) approach as a dominant or dominant approach. On the methods of accounting research, which is an approach that seeks to search and investigate the utility of accounting information and its ability to help in making decisions. The studies of Ball and Brown 1968 and Watts and Zimmerman 1978 formed the necessary beginning of a new trend in accounting research as an element in the culture of experimental research.
According to (Wolk et al.; 1992; Mohsin et al., 2019a Mohsin et al., 2021a; Salamat et al., 2020; Li et al., 2021, Naiwen et al., 2021; Naseem et al., 2021; Naseem et al., 2019 ), Watts and Zimmerman 1978 are the first to promote agency theory in accounting. Watts and Zimmerman borrowed agency theory from the economics literature to describe behavioral relationships and study management motives in choosing accounting alternatives. According to the hypotheses of efficient, weak or semi-inefficient market (EMH) by basing their work on applied and experimental economic literature describing their actions as (positive) as they are concerned with (how the world works), and that they focus on analyzing, interpreting and predicting the behavior of (those who prepare The data they provide (accountants) and those who use this data (management, other users)) when choosing and preferring one of the accounting methods and policies used, given that the choice of the economic unit for a particular accounting policy is not only following the accounting principles and standards, but may be attributed to the preferences of the economic unit management (Wolk, et. al., 2016: 43), which is done by relying on two theories (economic theory of government regulation, and economic theory of economic unity).
Second: professional ideologies
1-: The politicization of standards versus politicization of accounting theory
The perception that accounting standards can be resolved as an alternative to accounting theory is a concept marred by deficiencies and defects, as there are several fundamental differences between both accounting theory and accounting standards, which can be summarized as follows: (Al-Shammam, 2011: 14)
According to the researcher's vision regarding the views on the issue of politicizing accounting standards, and to the extent that the topic relates to the formulation and construction of the accounting theory, it:
2-: Accounting principles versus standards and provisions
The controversy surrounding accounting principles and their acceptance from one side and the criticisms directed at them on the other have pushed many parties within the international accounting community to shift from adhering to accounting principles to what is known as standards (general models or guidelines that lead to directing and rationalizing practice in accounting) and provisions (set of instructions) Or local laws issued by the state, profession, or establishments themselves and which accountability is bound to work in that environment). Despite the directions of the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), which has traditionally used the term (standards) instead of (principles), which are based on the rules and detailed provisions for accounting treatments, regardless of the logical and realistic results of those treatments except These two councils tended to abandon this approach and shift towards building standards based on a philosophy of principles instead of relying on a philosophy of standards and detailed provisions, which was evident in the common conceptual framework between these two councils, where the framework included indicating that the new standards that were issued or will To be issued by both chambers will be based on finding a balance between reliance on principles and reliance on detailed standards and provisions (Al-Hamid, 2009: 688)
Third: environmental ideologies
1-: Objectives of public accounting versus private objectives
Attempts to define a final formulation of the objectives of financial reporting were not a matter of intellectual luxury or unjustified additional efforts, as the quest to build any possible model for accounting theory or conceptual frameworks (as a temporary alternative to accounting theory) must start from this point, i.e., defining the objectives of financial reporting. The identification of which is related to several issues that were and still represent an area of controversy and debate, which require the necessity of resolving them as a preliminary step on the way to reaching a final formulation of the objectives of the financial reports, and the most important of these issues are:
Determining the types of users and then determining the general and private needs of information for many these users, in addition to identifying the types and models of decisions that can be taken based on that information and the economic and material impossibility associated with the process of providing or meeting these needs on an independent basis and the confusion that may result. For issuing more than one set of financial reports that include the unit’s operations' financial results.
According to (Al-Hamid), both (FASB and IASB) do not encourage general purpose financial reports (financial reporting reports) to be directed to (non) primary users as the two boards adopt a restricted opinion to determine the users of general-purpose financial reports. Thus, they tend not to Concern about users' rights or information needs who do not have a (direct) financial interest with the economic unit, which raises why the two councils adopt this restrictive and narrow view? Where he adds that the reason behind this may be the fear that the user of the financial statements and reports will be lost in the overload of numbers and their details if he takes into consideration meeting the needs of those who do not have a direct financial interest with the unit, as well as the principle of cost and benefit in expanding the presentation of information in the financial reports (Al-Hamid, 2009: 118), or the reason may also be related to accountants ’keenness to provide excellent and useful information that can satisfy the needs of its users, and if the two chambers adopt a non-narrow view, they will be many and their needs are multiple and intertwined and perhaps contradictory at times, and this will be difficult If not impossible to access it by the accountant.
The multiplicity of viewpoints about the objective of the financial reports and their compatibility at one time has led many theorists and researchers in accounting to search for a suitable standard (or criteria) to define these goals and link them with users and their needs. He chose Sterling, for example, the criterion of (utility) 1) as a primary standard in conformity with the models of rational decisions and the choice of measurement methods, stressing its importance and priority over other requirements such as objectivity or ability to verify, justifying its choice of this criterion that any accounting system cannot provide or provide all the information required by all users and therefore this useless data must be excluded and focus On this information that has proven useful in achieving the objectives of the users of the financial reports, including the information they contain, which is indicated by the standard conceptual framework of (FASB and IASB) for the year (2010 AD), as stated in the text of the objectives No. (2, 3, 4, 5, 6, 7, 13) that the objective of the financial reports is to provide useful or useful information about the financial performance of the economic unit, its financial position, and the change in it in the interest of the largest number of users who make decisions except Economic, he also indicates that the financial reports prepared for this purpose are of a general purpose, meaning that they can meet the needs of (most) users, but they do not provide all the information that may be needed for the purposes of making economic decisions because they mainly reflect historical financial information and do not present Non-financial information.
2-: the globalization of theory versus globalization of application
According to a study revealed by the American Society of Accountants in (1964 AD) and prepared on the reality of 25 countries in the world, there are significant differences in principles and rules between the countries under study and that a single structure of accounting standards and rules that are compatible with the needs of local and foreign investors is impractical and impractical. Therefore, the pursuit of (multinational) economic units to obtain investment opportunities and funds across borders often faces time and cost problems. These units must reconcile their financial reports with the country's accounting rulesto seek investment opportunities. Units Identify differences in the report, which calls for the necessity to simplify this process and move towards the globalization of accounting standards.
Moreover, based on the desire of many practical and professional bodies and their interest in unifying and globalizing accounting standards, the International Accounting Standard Board (IASB) has endeavoured, since its establishment in 1973 AD, to achieve this purpose, as this council aims mainly to ( Preparing and publishing accounting standards that are taken into account when presenting financial reports to enhance their credibility and act according to them worldwide) (Schroeder et al., 2012: 58) because this council is convinced that the existence of one set of accounting standards that can be applied globally is a necessity required by the data of the transition towards the era of globalization and economic openness.
To support this goal, the council has directed to (Jajawi, 2000: 87) and (Hammad, 2011: 19)
The issue of globalization and internationalization of accounting standards, like many issues in accounting, raises a debate between opinions that go towards focusing on the advantages that can be obtained through globalization and internationalization of standards, and opinions that go against this trend, that is, by focusing on the disadvantages or defects associated with the globalization and internationalization of accounting standards.
The criticisms directed at the globalization and internationalization of accounting standards focus on the following points:
(Credits, 2008: 27-30)
3-: The local environment versus the global environment
The fact that there are fundamental differences between accounting systems and the concepts and practices upon which they are based in different countries has become a matter for which strong evidence has been provided in contemporary accounting thought, which has been represented by the results of a large number of studies and research that deal with these differences from many angles, despite the stability of accounting thought on The significance and importance of the impact of environmental variables, as there is no general and absolute agreement about the nature or number of related environmental variables, in addition to the absence of a final and complete classification and analysis of their effects on accounting thought, as these factors cannot be subjected to laboratory experiment to prove them categorically from one side, in addition to the lack of thought Accounting to a general framework for the influential relationships of environmental variables because of the interconnectedness and interaction of those relationships in bringing about changes to accounting concepts and practices from another side.
The recognition of the existence of environmental factors and their impact and the conflicting opinions about the possibility of creating intellectual grounds that establish the basis for building an accounting theory with global features should not be a reason for not continuing the attempts to establish such a theory, especially with the changing features of the environment in which accounting operates in our present-day and its direction towards the global dimension, in addition to To the difference in the viewpoint towards the users of accounting information with the introduction of the concept of the global use of information, which cannot be accessed and achieved without relying on a logically acceptable and universally unified intellectual basis, which requires, in the first place, the need for cooperation between all parties of the international accounting community, where it falls on this. The parties settle different concerns and try to search for standard solutions instead of discussing the differences.
Conclusions
References
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