7 Summaryofthedevelopmentofaccountingtheory Thischapter thetheoryofaccountingnormsfocusontwopoints First standardizetheaccountingtheorystage makeanimportantcontributiontothestageoftheideaofaccountingfortheintroductionofJurists second normativeaccountingtheoryformationstage thetwocombinetomakethereadermasterthedevelopmentofaccountingtheory 7 1thedevelopmentofaccountingtheory thedevelopmentofaccountingtheorycanbedividedintotwophases PhaseI tostandardizetheaccountingtheoryideastage Sprague Sprague Canning Canning andswilly HWSweeney andotherswillbeintroducedineconomicsaccountingtheory PhaseII toformtheframeworkofnormativeaccountingtheorystage Paton Paton Littleton Littleton EdwardsandBell EdwardsandBell whoproposedthestructureoftheframeworkofaccountingtheory 7 2Theraiseofnormaccounting 7 2 1CharlesEzraSprague 1842 1912 HewasinstrumentalinorganizinganddevelopingtheSchoolofCommerce Accounts andFinance thefirstofitskindintheworld attheNewYorkUniversityin1900 Hewasamemberoftheoriginalaccountingfacultyduringtheeveningsfrom1900untilhisdeath Duetohisdevotiontotheprofessionofaccounting helecturedwithoutcompensation Hewasalumnitrustee 1894 98 andlifetrustee 1906 resignedshortlybeforehisdeath ofUnionCollege 7 2Theraiseofnormaccounting 7 2 1CharlesEzraSprague 1842 1912 HewrotemanyarticlesforprofessionaljournalsandamonghisauthoredbooksareTheAlgebraofAccounts 1880 TheAccountancyofInvestment 1904 ExtendedBondTables 1905 ProblemsandStudiesintheAccountancyofInvestments 1904 TablesofCompoundInterest 1907 ThePhilosophyofAccounts 1907 Amortization 1908 LogarithmstoTwelvePlacesandTheirUseinInterestCalculations 1910 HewasassociateeditoroftheperiodicalTheBookkeeper 1881 84 Thepublication snamewaschangedin1883totheAmericanCountingRoomandthelastrecordedissuewasApril June1884 7 2 2JohnB Canning 1884 1962 introductionEconomicstoAccountingResearchCanningisawell knowneconomist in1909enteredtheUniversityofChicagomajoringinpoliticaleconomy in1919adoctorateattheUniversityofChicago HasbeenteachingattheUniversityofChicago StanfordUniversity Hismasterpiece publishedin1929are TheEconomicsofAccounting TheEconomicofAccountancy itsmaincontributionistointroducesomeoftheviewsofeconomicstoAccountingResearch 7 2Theraiseofnormaccounting 7 2 3 Sweeney realincometheoryHisfamousbookispublishedin1936 stabilityofaccounting StabilizedAccounting thebackgroundofthebookcoincideswiththewriting largesteconomyinthe1929 1933crisis hasjustpassed andtheurgentneedofanewaccountingconcepttodealwitheconomicinstabilitybroughtaboutbypricefluctuations andpromotedtheemergenceofaccountingforpricechanges 7 2Theraiseofnormaccounting 7 2 4 Macneel MarketpricesaremostreasonablemeasuresofpropertyRepresentativesareMacneelbookpublishedin1939 Accountinginthereal TruthinAccounting thisbookisalmosta stableaccounting line thetwobooksareintheearly20thcenturyaftertheeconomiccrisisintheUnitedStatesbutcorporateaccountingfraudatthetimestillopenforbusinessincome itisimpossibletocompletelytrusttheauthenticityandthustheformationoftheaccountingprofessionintheUnitedStatesgainsarealschool 7 2Theraiseofnormaccounting 7 3Thedevelopmentofnormaccountingtheory 7 3 1 William Anderw paton 1889 1991 thefatherofmodernaccountingtheoryHeisauthororco authorofmanybooks includinghisclassicAccountingTheory 1922 PrinciplesofAccounting 1918 CorporateProfitsasShownbyAuditReports 1935 EssentialsofAccounting 1938 AdvancedAccounting 1941 ShirtsleeveEconomics ACommonsenseSurvey 1952 CorporationAccountsandStatements 1955 CorporateProfits Measurement Distribution Reporting Taxation 1965 Assets AccountingandAdministration 1971 Hewaseditorof andamajorcontributorto the1932and1943editionsoftheAccountants Handbook Overa60 yearperiod beginningin1916 hehaspublishedmorethan150articles 7 3Thedevelopmentofnormaccountingtheory 7 3 1 William Anderw paton 1889 1991 thefatherofmodernaccountingtheoryHehasdabbledinsports especiallytrackandtennis triedhishandatflying andclaimsthathisarticleentitled OnGoingUnderground isstilltheonlysystematicaccountoftheadvantagesofsubsurfacehousing HislovefortheEnglishlanguageledtothepublicationin1984ofhisbook Words CombiningFunandLearning OntheFriday July14 1989 precedinghis100thbirthdayin1989 apartywasgivenatthebusinessschoolontheUniversityofMichigancampustocelebratetheoccasion Morethan200formerstudents friends andcolleagueswereonhandtosharebirthdaywishes HediedApril26 1991attheageof101 7 3 2 Alexander Measurementofpropertyshouldbesubjecttothedecision makingmodethe1950publicationof Inthedynamicmeasurementofincome thebookthatshouldbethemeasurementofavarietyofproperty shouldapplytotheneedsofdifferentdecision makerschoosedifferentmeasurementmodels whichdonotagreewiththegeneralpricelevelunitsofmeasurement 7 3Thedevelopmentofnormaccountingtheory 7 3 3 Ananias Charles Littleton 1886 1974 ThefocusofaccountingareearningsHewasactiveinprofessionalorganizations particularlyintheAAAinwhichheservedasvicepresident 1936 directorofresearch 1940 42 president 1943 editorofTheAccountingReview 1943 47 andmemberoftheExecut