Financial accounting theory has accumulated a vast literature. A cynic might be inclined to say that the

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Financial accounting theory has accumulated a vast literature. A cynic might be inclined to say that the vastness of the literature is in sharp contrast to its impact on practice.

(a) Describe the different approaches that have evolved in the development of accounting theory.

(b) Assess its impact on standard setting.

(c) Discuss the contribution of accounting theory to the understanding of accounting practice, and suggest contributions that it might make in the future.

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