They Gotta Quit Kicking My Dog Around, II

Abstract

The decision-usefulness theory of accounting – the theory currently generally accepted by those interested in accounting theory – is under-appreciated. According to Hatfield’s three criteria – lineage, company, and service to society – decision-usefulness theory is highly respectable. Its base was laid by the creators of double-entry bookkeeping. It was developed a half century ago and has attracted a world-wide following among those concerned with the betterment of accounting. It serves with honor in accounting research and standards setting and has great potential in accounting education. Whether the enmity of those in the financial statement preparation community should be counted as a badge of honor or a demerit is a personal choice. Despite such impressive lineage, high-class company, and valuable service, the decision-usefulness theory of accounting “don’t get no respect.” They gotta quit kicking my dog around.