A REVIEW AND CRITIQUE OF COMMANDER THEORY

Il-woon Kim; Phillip C. James

doi:10.46281/ijafr.v6i2.1081

Il-woon Kim UA https://orcid.org/0000-0002-8483-8120
Phillip C. James SUNY

DOI: https://doi.org/10.46281/ijafr.v6i2.1081

Keywords: Commander Theory, Critique.

Abstract

The development of accounting was marked by three key theories namely: the proprietary theory, the entity theory and the fund theory. The commander theory was subsequently introduced to address the criticisms of the previous theories. This paper, therefore, outlines the history and development of the commander theory, it also outlines the essence of the theory and discusses general criticisms levied against it. Despite some apparent weaknesses of the commander theory, one of which is that it is in-ward focused, there-by ignoring those outside the firm, it is simultaneously argued that the commander theory should be viewed as a significant theoretical framework in the formulation of accounting standards.

JEL Classification Codes: M41.

Author Biographies

Il-woon Kim, UA

Professor of Accounting and International Business, George W. Daverio School of Accountancy, University of Akron, USA

Phillip C. James, SUNY

Assistant Professor of Accounting, School of Business and Liberal Arts, State University of New York, Canton, USA

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