In this essay, we wish to make a single, simple argument. That is, if
information problems are the primary root of the accounting problems,
then modern information economics should be the center of accounting
research. In making this argument, we plan to first revisit a somewhat
elementary accounting question. Using the question as a spring-board, we
retrace the rise of information economics in the accounting discipline.
Finally, we argue that to answer similarly posed questions, accounting
theory needs a (modern) information-economics core. It also needs to
build accounting measurement structure based on the core. Such an
accounting theory, hopefully, connects with the existing framework of
accounting practice at a fundamental level and ought to guide accounting
research, education, and policy-making