The fifth edition of Accounting Theory reflects our significant and ongoing commitment to placing accounting theory in the context of accounting practice and to explaining the importance of theoretical issues to accounting students. This provides an important framework in which not only accounting information but also the actions and decisions of those responsible for accounting information and reporting can be interpreted. This is particularly relevant as the role of accounting information and accountants has come under increasing scrutiny owing to a range of spectacular -corporate collapses accompanied by reports of extremely opportunistic and at times fundamentally illegal accounting practices on the part of a number of large public companies, both here and in the United States.

There has been some consolidation and restructuring of chapters and the addition of a vignette in each chapter offering an international perspective. However, the major focus continues to be on ensuring that students are directed to key learning objectives and that discussion of theoretical issues is enhanced by examples drawn from practice. Each chapter:

• clearly identifies learning objectives, which are cross-referenced throughout the chapter
• has been updated to reflect current practice and changes to accounting standards
• reports on and interprets the most recent literature
• reinforces theoretical issues through the Theory in Action case studies in each chapter.

A comprehensive glossary of key terms appears at the end of the book.
The main strength of Accounting Theory is the balanced approach taken in explaining and discussing the alternative theories and perspectives of accounting. It is important that students can study and discuss accounting theory in an objective manner. Differences in accounting practices are a function of differences in theoretical viewpoints on the part of those responsible for measuring and reporting accounting information. In order for students to argue for a particular approach and to apply an alternative, they must appreciate the principles which underlie their perspective. This text provides an objective analysis of the alternatives and provides the basis for -students to understand and debate issues.

We believe that we now have a text which provides a 'user-friendly' approach to accounting theory. Accounting theory often represents a challenge to accounting students and we have sought in this addition to build on the strengths of the earlier editions by reinforcing application issues and introducing a significant number of new questions and problems. Every chapter has been revised and updated. The book provides a current, detailed and challenging review of accounting theory. However, we are keen for feedback, and encourage academics and students to contact us with comments and suggestions for improvements or expansion of the issues covered.

We wish to offer special thanks and appreciation to Ashley Carr and Keryn Chalmers, for their invaluable assistance in providing research materials and case studies that have been used in the text, and to Susan McGowan, Frances Chua, Tyrone Carlin, Allan Purnell and Dot Cochrane for reviewing the manuscript. We appreciate the contribution of Ann Tarca who prepared the new 'International View' vignettes in each chapter, Bryan Howieson, who revised and updated chapter 11, 'Behavioural Research in Accounting', and Geoff Frost, who revised and updated chapter 19, 'Social and Environmental Reporting'.

We also thank the professional editorial and management team at John Wiley & Sons not only for their hard work, but their commitment to keeping the style and look of the book fresh and relevant to students. Finally, we thank our families for their ongoing support and understanding.

Jayne Godfrey
Allan Hodgson
Scott Holmes
March 2003