Relevance of different theories in accounting

The principles that support the practice of accounting have become more complex than before. Emerging modern theories involving financial and non-financial phenomena continue to impact on the accounting practices as more and more sectors add up to an already exist list of stakeholders. The utilization of the various theories affecting the recording, reporting and control of financial information is, on the average, an objective way of supporting and presenting evidences of transactions subject to the verification and audit processes by interested stakeholders (Houck, 2003). However, the standardization and reconciliation of the various accounting standards as used and practiced by various countries with structural differences in basis for recording, reporting, control and audit of financial information is a great concern for the profession and must be the subject of harmonization at the soonest possible time (Peecher et al, 2006).