The Fundamental Problem of Financial Accounting Theory

Nurhaliza S, Hasibuan MRI and Muda I

Published on: 2024-06-12

Abstract

This research aims to examine further the fundamental problem of financial accounting theory. By using qualitative methods that utilize various literature as references. The research results show that the fundamental problem of financial accounting theory is how to reconcile differences in interests over the role of accounting information between company owners and company management. These differences give rise to two main problems, namely: information asymmetry and the failure of accounting theory to overcome accounting fraud. To overcome this problem, researchers believe that the role of accounting research is very necessary.