The Impact Of Capitalist Thinking on Accounting Theoretical Framework :Critical Analytical Study

Abstract

This study analyzed and criticized the impact of the capitalistic paradigm way of thinking on
the conceptual framework of accounting. To study the impact of capitalistic thinking on the
accounting theory, the researcher focused on the analysis and criticism of the concept of human
asset and the call for its being quantitatively measured and disclosed in the financial reports. In
addition the researcher criticized the concept of creative accounting that is currently used as
cosmetics to the financial reports with the aim of making a false impression on the users about the
financial performance in favor of the issuing firms. The study concluded that, the concept of
human asset and creative accounting is an effect to the pattern of capitalistic paradigm thinking
which confuses between means and goals in such way that means are sometimes prioritized to
goals. The study recommended the use of qualitative reports in the disclosure for human resource
instead of the quantitative disclosure.