The Property Rights Basis of Modern Accounting Theory

As a micro-measuring system,accounting plays the most basic,important and operational role in the process of protecting property rights,realizing property rights benefits and internalizing externalities.The internalization of externalities has produced property rights,and accounting as the same.Accounting is born for the internalization of externalities as the essence of accounting is the internalization of externalities.The aim of accounting is the externalization of internalities,the function of accounting is property definition and protection,and the object of accounting is property rights flow.So accounting is a micro measuring system to define and protect property rights according to the accepted standards.