Fitzgerald's Theory of Accounting

Fitzgerald’s Theory of Accounting emphasizes that accounting is a social process aimed at providing relevant, reliable information about an organization’s financial position and performance. It posits that accounting principles should be guided by the organizational context and societal needs, balancing the interests of stakeholders such as investors, creditors, and the public. The theory advocates for transparency, consistency, and adaptability in accounting practices to support informed decision-making and facilitate economic stability. Essentially, it views accounting not just as technical record-keeping but as a vital communication tool that reflects and influences broader social and economic environments.