The 5th edition has been updated to enhance student understanding of the role of accounting theory and its application to the professional environment. Increasingly, students have failed to appreciate the relevance of studying accounting theory due to the esoteric nature of the discipline and its lack of any obvious correlation to a discrete accounting process. The new edition addresses this issue and clarrifies the link to industry more clear through chapter vignettes and case studies.

The new edition goes further to align the study of accounting theory to the domestic and international professional accounting environment. To achieve this, the new edition includes an "International View" vignette in each chapter to profile the international response or thinking on relevant issues. "Theory in Action" boxes link the theory to real world examples. End of chapter case studies help develop and apply understanding of the material. The new edition continues to provide the latest research and the most comprehensive discussion of material whilst maintaining its critical perspective.