What is financial accounting theory?

What is the financial accounting theory is introduced as follows:

Financial accounting theory is a systematic analysis and research on the concept, principles, rules and methods of financial accounting. It aims to explain and understand the logic behind financial reports and information disclosure, as well as the basic principles and rules of financial accounting. The following are the main contents and viewpoints of some financial accounting theories:

1. targets and users of accounting information: financial accounting theory focuses on the targets and users of accounting information, that is, providing information about the financial status, operating performance and cash flow of enterprises to meet the needs of internal and external stakeholders.

2. Accounting concepts and financial reports: Financial accounting theory studies the basic concepts of accounting and the principles of preparing financial reports. Including accounting subject, measurement basis (such as historical cost and fair value), accounting period concept, accounting subject and accounting identity principle.

3. Accounting policy choice and financial decision-making: Financial accounting theory considers all kinds of accounting policy choices that enterprises may face, and the impact of these accounting policies on financial reports and economic decisions. This paper studies the influence of accounting policies on the quality and significance of financial reports, and discusses the economic and market consequences of accounting policies.

4. Accounting standards and international accounting standards: Financial accounting theory studies national accounting standards and international accounting standards, compares different accounting rules and systems, and puts forward theoretical and practical measures to promote the standardization of international accounting standards.

5. Information disclosure and transparency: Financial accounting theory studies the purpose, content and quality of information disclosure in order to improve the information transparency and market efficiency of enterprises. Study the impact of the reliability, integrity and quality of accounting reports on investors and other stakeholders.

6. Corporate governance and financial accounting: Financial accounting theory studies the influence of corporate governance structure and mechanism on financial accounting. By studying the relationship between corporate governance mechanism and financial report, this paper reveals the importance of corporate governance to the quality and credibility of financial accounting.

The research of financial accounting theory aims at improving the quality of financial reports, strengthening information disclosure and transparency, and promoting the healthy development of global capital markets. The results of theoretical research play an important guiding role in the formulation of accounting standards, the formulation of enterprise decisions and the protection of investors.