The Significance of an ‘Orientation Postulate’

Academic Article

Abstract

  • Until the 1930s, the ‘orientation postulate’ was a popular means of rationalizing bookkeeping practice. This was during a period when the balance sheet was the focal point of reporting and inductive theory formulation was popular in accounting. However, after the 1930s, the balance sheet was no longer the focus of financial reporting. By the 1960s accountants sought a deductive mode of theory formulation and the ‘orientation postulates’ were abandoned. Evidence adduced suggests that an ‘orientation postulates'can be useful in addressing income statement as well as balance sheet issues, and is also useful in diminishing chaos and promoting logical and cohesive theory formulation. If a discipline has a common orientation, then less ad hoc principle formulation is likely to occur. Copyright © 1989, Wiley Blackwell. All rights reserved
  • Digital Object Identifier (doi)

    Author List

  • STEWART JP
  • Start Page

  • 97
  • End Page

  • 115
  • Volume

  • 25
  • Issue

  • 2