A Paradigmatic Approach to Accounting Theories in Economic and Legal Dimensions

Abstract

The article is devoted to examining the paradigmatic approach to accounting theories within economic and legal dimensions. It has been recognized that the paradigmatic approach is an important tool for understanding both the historical evolution of accounting theory and the mechanisms by which accounting systems adapt to new realities, as it facilitates the integration of economic, social, and technological factors into theoretical and applied developments, ensuring the advancement of accounting science in accordance with societal needs, and providing grounds for viewing accounting as a dynamic system that undergoes continuous transformation in a globalized world. The evolution of accounting theories under the influence of changes in the economic environment, institutional conditions, and regulatory framework has been revealed. The factors and processes influencing the paradigmatic approach to accounting theories have been investigated, in particular: the historical stages of accounting development, the digitalization of accounting processes, the standardization of accounting and reporting at the national and international levels, economic laws, environmental and social factors of influence, and the political situation in the country and in the world. It is proposed that the functions of accounting theories be considered from the standpoint of their relationship with risk reduction. The functions of accounting theories are identified as follows: explanatory, methodological, normative, predictive, communicative, and analytical. An analysis of the legal dimension of accounting theories has been conducted, encompassing such features as: the regulatory and legal foundation of accounting; the requirement that accounting operations comply with legal norms; the ordering of legal relations; and the establishment of legal liability. The effectiveness of the relationship between accounting theories and the economic dimension has been established, including: the use of a shared theoretical and categorical apparatus with political economy; a connection to the social component; the globalization and standardization of accounting processes; the analytical component of accounting processes, among others. An analysis of the role of accounting information in managerial decision-making, resource evaluation, performance assessment, and meeting the informational needs of economic entities is provided. Attention is focused on the regulatory consolidation of accounting principles, the legal status of accounting information, the regulation of business operations, and liability for the accuracy of financial reporting. It has been proven that the application of the paradigmatic approach enables a comprehensive assessment of the transformation of accounting concepts, reveals the interdependence of economic and legal factors, and identifies prospects for the further development of accounting theory under conditions of economic digitalization, globalization, cybersecurity of accounting data, and the reduction of potential risks.