Reflections on the Social Contractual Nature of Accounting

The nature of accounting is an everlasting topic for research in this area.In recent years,a new social contract theory of accounting has been arising,and the contract nature of accounting is based on the theory of modern mainstream corporate contract.As an integral part of corporate contract,on one hand,accounting contract joins parties of corporate contract together by means of its measuring function,and thus brings the operations of a business under systematic control;on the other hand,as a result of struggling for the property rights of accounting information by market factor owners,its contractual nature is embodied in the accounting information generated.As a market contract,it reveals economic interest relationship between market factor owners and the possible actions they will take in the future.The nature of accounting is defined as market contract,which can better explain lots of phenomena in accounting activities and many basic categories in accounting theories.