Financial Statements and Positive Accounting Theory. The Early Contribution of Aldo Amaduzzi
19 Pages Posted: 17 Apr 2005
Date Written: September 1, 2005
This paper examines some of the accounting ideas that were developed in 1949 by an Italian professor, Aldo Amaduzzi, with regards to positive accounting studies and the content of financial statements. The paper briefly reviews the aim, methodological assumptions and key findings of the so called positive accounting theory based on the works of Jensen (1976), Watts (1977) and Watts and Zimmerman (1978; 1986). The analysis of the early work of Amaduzzi on the contents of financial statements as the equilibrium outcome of a conflict of interests between corporate stakeholders shows that many of the methodological issues on accounting theory stressed by the so called Rochester school of accounting were raised by Amaduzzi (1949). The paper concludes that although some key differences between the Rochester school of accounting and Amaduzzi's thought do exist, the latter may be considered a forerunner of positive accounting theory.
Keywords: positive accounting theory, accounting history, financial statements, conflict of interests, Italy, stakeholder theory.
JEL Classification: M40, M41, M21
Suggested Citation: Suggested Citation