An Analytical Review of Selected Contemporary Accounting Theories: Exploring Evolution, Efficacy and Emerging Trends

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Authors: Oluwafunmilayo Ajibola

Abstract

Accounting theory has undergone significant evolution over the years, driven by changes in business practices, regulatory requirements, and advancements in technology. Traditionally, accounting theory focused on providing a framework for recording financial transactions and preparing financial statements. However, as business environments became more complex and globalized, the need for more robust and adaptable accounting theories became apparent. Hence this study examined the selected contemporary accounting theories, exploring evolution, efficacy and emerging trends. It can be concluded that in order to increase the role of research in making correct predictions, there is the need to develop new accounting theories. There are new areas in accounting research which includes the application of big data analytics, artificial intelligence, and blockchain technology to enhance the relevance, reliability, and timeliness of financial information. These technologies offer opportunities to automate routine accounting tasks, improve risk management processes, and enhance transparency in financial reporting. However, they also present challenges related to data privacy, cybersecurity, and ethical considerations. The study therefore recommends that accounting theorists should propound theories that actively address this and many other areas due to complexity of the business world we have today.

Keywords: Contemporary accounting theories, evolution, efficacy, emerging trends, accounting theory

2026 - NIJAF - 18 - 112 Oluwafunmilayo.pdf

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