Financial Statements and Positive Accounting Theory: The Early Contribution of Aldo Amaduzzi

Abstract

This paper examines some of the accounting ideas that were developed in the late 1940s by an Italian professor, Aldo Amaduzzi, with regards to positive accounting studies and the content of financial statements. The paper briefly reviews the aim, methodological assumptions and key findings of the so called positive accounting theory based on the works of the Rochester school of accounting. A content analysis of the early work of Amaduzzi, in relation to his view that the contents of financial statements can be seen as the equilibrium outcome of a conflict of interests between corporate stakeholders, shows that many of the methodological issues on accounting theory stressed by the 'Rochester school of accounting' were raised by Amaduzzi (1947, 1949). The paper concludes that although some key differences between the two approaches do exist, Amaduzzi may be considered a forerunner of positive accounting theory.

Keywords: positive accounting theory, accounting history, financial statements, conflict of interests, Italy, stakeholder theory

JEL Classification: G34, M40, M41, M21