Abstract:

An extremely important elements of accounting theory are the balance sheet doctrines (theories), the central point of which is the balance sheet of the entity. In the United States that the so-called event theory of accounting emerged, which, although it did not develop until the late 1960s, has its roots in the period of crises of the 1930s. For creditors and investors it was important first of all whether the entity was able to make a profit, and not what assets it had at its disposal. There has been a shift towards a dynamic view of the balance sheet, which aims to determine financial income. Since the creation of the balance sheet method, however, more interest has been focused on the balance sheet in its modern sense: its structure, functions and contents it should present, as well as the way assets and liabilities are valued. The diversity of views and approaches to the balance sheet has led to the development of numerous balance sheet theories. For years, not only in Europe, but worldwide, the literature has pointed to the significant influence of accounting theory, and especially German balance sheet theories, on the “philosophy of thinking” in the process of shaping modern financial reports. Sganzini, considered as a precursor of the dynamic balance sheet theory, Schmalenbach, Walb and Kosiol have made significant contributions to the development of accounting theory. This article addresses the issue of the work of Kosiol, the precursor of the pagatoric theory, formulated the elements of a systematic, unified and closed theory of accounting, valuation and balance sheet on the basis of the research of Schmalenbach and Walb. The structure of the article is subordinated to its objectives. After a brief introduction to the subject, the following are presented in turn: a short description of the concepts of Sganzini, Schmalenbach and Walb as precursors of the approach to cash flows and the works of the continuator of the dynamic balance theory of Schmalenbach - Erich Kosiol. The paper ends with conclusions and directions for further research. Literature analysis and deductive approach supported by a particular theory approach are used as a research method.