Reflections of Economic Developments on the Framework of Accounting Theory Concentrating on International Accounting standards

The new economic changes and developments lead to the General Agreement Tariffs And Trade (GATT), which transformed to the World Trade Organization (WTO). All these changes had affected on accounting. This study shows the effects of these changes and developments on items of accounting theory as follow: Accounting Concepts objectives of financial reports, accounting entity, quality of accounting information and items of financial statement. Accounting Assumption as accounting entity, going concern and periodical. Accounting Principals as realization, matching, historical cost, disclosure, conservatism and consistency.