This paper examines a series of studies that have applied Habermas's critical theory—the work of the German philosopher who sought to elucidate the social nature of accounting—to accounting phenomena. This approach represents a new methodology emerging alongside critical and interpretive methodologies, distinct from the natural scientific methodology of mainstream empirical and analytical accounting research. Habermas's critical theory is encapsulated in his theory of communicative action, which is also the primary framework applied in accounting studies. He argued that all societies should not aim solely at increasing productive capacity through labor, but that communicative action—reaching understanding and consensus through interpersonal dialogue and discussion—is far more important. However, as society develops, it differentiates into the lifeworld, steering media such as money and power, and systems that perform specific functions. As systems become more complex and the lifeworld becomes rationalized, they become increasingly differentiated from each other, and the steering media and systems actually shrink and distort the rationality of the lifeworld—a condition Habermas termed internal colonization. The series of studies introducing Habermas's critical theory into accounting has been led primarily by British accounting scholars, and this paper examines three theoretical studies and four case studies. The theoretical studies explore the relevance and applicability of critical theory to accounting, arguing that accounting phenomena must be understood not only from an objective, technical perspective but also within social and organizational contexts. The case studies all examine accounting systems in nonprofit institutions (churches, the National Health Service, the Education Reform Act and the National Health Service Act, and hospitals), treating accounting as a steering medium and concluding that accounting is colonizing the lifeworld. In Korea, such a methodology has not yet been introduced. Examining a single accounting phenomenon through diverse methodologies would be highly beneficial for the advancement of accounting studies.