Accounting Theory represents the culmination of your studies in financial accounting, and exposes you to the underlying theories and other influences that have played an important role in shaping accounting practice. Further, the unit considers emerging issues currently being addressed by researchers. In this way, the unit will give you an understanding of both the historical and contemporary issues that have influenced the development of accounting practice, accounting regulation and accounting thought. Over time, accounting theory has focused on three main approaches or viewpoints. These are the descriptive (positive), normative and critical viewpoints. Using these theoretical points of view, this unit will help you examine current issues, such as social and environmental accountability, the ethical and global dimensions of accounting, Conceptual Framework projects and the political context within which accounting policy decisions are made.  We present a theoretical framework for examining accounting issues and practices, and a chance for you to develop high-level critical, evaluative and analytical skills. This will help you to present arguments and opinions on a broad range of accounting issues, with some authority. Knowing about historical and contemporary issues will also give you a foundation for understanding the rationale (main reasons) for current accounting policies and practices, and the directions in which accounting policies are likely to develop. This will better prepare you for the changes that the profession will inevitably undertake.