Discuss about the Accounting Theory and Application for Positive Accounting Research.
Liberalizing the positive accounting approach for developing the casual detailing of the human behavior in accounting settings is the main theme of the given research program (Dunmore, 2016). The theory of knowledge, specifically highlighting the methods, scope and the reality needs to be cleared out to understand the distinction between generic opinion and justified belief of a particular concerned research article. Thus, the given study mainly discusses the positive accounting explanations have been which seems largely incapable in achieving scientific objectives. The casual involvement of the human elements in the accounting field has struggle with testing theoretical models, undue dependence of the logic of hypothesis, ineffective duplication confined the level of confidence to accept the findings. It has further been shown the lack of interest in the quantitative values of the parameters while doing the research works, especially the field of accounting. Hence, the article about the positive approach to the research of accounting will be discussed in this study. The aim of the critique is to examine the theme of literature that the human behavior needs to be explored in the field of accounting for effective decision makings.
To understand the inner meaning of the given article regarding the positive accounting research, the paper will primarily explore the summary of the article. Based on the research hypothesis, the theoretical framework will be designed later in this paper. After over viewing the entire article, the significance and limitations of the articles will be determined before making findings of the article in the conclusion part of the research paper.
In today technological world, majority of the complex organizations are willingly involve in less personal or comprehensively impersonal systems of information for their decision making. However several critiques mentioned in their research papers that face-to-face interactions can the potentiality in taking decisions more effectively and accurately (Penman, 2013). Thus, the article highlights the importance and deficiencies of positive accounting research, by briefly reviewing the intellectual project. The article investigates serious deficiencies in terms of presenting the accounting data to the higher authority of the organization. Interestingly, most of the researches are restricted in solving accepted puzzles within a social group. However, the article included the concept of the disciplinary matrix used by Kuhn (1970). The idea behind such concept in this article is to introduce the positive elements of accounting for taking decisions regardless of the social or intellectual contribution deriving from the solutions (Dunmore, 2016). Interestingly, this has been proved that the idea of disciplinary matrix is beneficial for presenting accounting data and increases the opportunity for adopting a more useful paradigm while taking the decision. Thus the article has provided suggestions to incorporate present system toward invigorating the research of accounting positively for achieving its potential.
In this article, several working hypotheses have been set for the purpose of the intellectual enquiry at work. Firstly, this has been imagined that the world is independent place where there is no control over the wishes of human subject. Secondly, the tested events must be the part of the world or this cannot be taken as the results of interventions from outside the world. The next hypothesis assumed that the normal people can obtain fairly reliable information about events in the world by careful observation. Lastly, the hypothesis clearly mentioned that the purpose of the intellectual enquiry is to make understand the world that the careful observation with positive approach in accounting field can improve the decision making. Needless to say, the human behavior is one of the core elements for taking positive and transparent approach in accounting. The article develops an inner meaning that the clarity and positivity in think of a person can be extended when personal interactions takes place during the intellectual enquiry. However, the religious understanding may discourage such enquiry (Giddens, 2013). This concept has been described in this article with the support of well-known stories for better understanding of the theme of the research. To understand the positive research in intellectual program, the article explored the idea of scientific research program, concentrating mainly the economic and accounting perspectives. Thus, the paper has clearly determined the deficiencies in its implementation in the perspectives of the modern scenario.
Later the article discussed the research topic with the help of apt examples of positive research in accounting. In this section, the term “positive accounting theory” has been connected with Watts and Zimmerman because they were primarily discussed this in a broader sense instead of concentrating a particular theory (Whittington, 2015). Based on the perspective of them, this has been observed that accounting phenomena are generic caused by the operation of coherent individual-interest among parties who frequently interact with expression or indirect contracts in different types of organization. Interestingly, the concept of positive research in accounting described by them can encompass not only by the choices of firm managers but also decisions taken by auditors regarding the pricing and reporting purpose. However, the article investigates that such kind of research do not illustrate considerably on this theoretical model. Contradictory part of the article is that human acts rationally but not in the sort of events associated with the Positive Accounting Theory (Dunmore, 2016). The view of Fukuyama argued that eighty percent of the time is being considered correct when organizations incorporates fundamental model during the intellectual enquiry for the accounting purpose.
In the forth section of the article, the scientific viewpoints have also being discussed for proving the fact that the research related to positive accounting is not the same as the research of accounting. Most of the cases, interpretive researchers argued that interpretive research program does not follow the assumptions of positive research (Christensen et al. 2016). For instance, those reality associated with the social nature of reality can be match the views of the viewpoints of the intellectual researchers. In other words, the socially constructed events carried out by human subjects are different and positive approach cannot be followed universally. In short, the article has clearly made an observation that human behavior varies with the auctions taken by them. On common perspective, mind makes choices, when humans have free will. Thus, the cause of behaviors is fluctuating and the decisions taken based on the human elements can be considered true or perfect for decision making all the time.
Later the article tested the chosen hypotheses with the application of the theoretical framework. For instance, the collection of data is important for doing most of the scientific research. For this, theories are practiced for accumulating data. However, the argument lies on the concept of the acceptance of such used theories over the centuries. When the natural scientists think differently, they might observe irregularities in the past theories. In that situation, the careful observation based on those theories may found distinguish from the current observations. Frankly speaking, creative idea in science may be varied with different approaches of the natural scientists. This concept has been discussed with the Popper’s criterion in this section.
The essence of successful positive research program is also incorporated in this article for improving the human behaviors into the accounting research for better financial decision making. To determine the positive aspects of the research program, the researcher conducted a survey. Needless to say, the survey has revealed the noticeable gap between positive accounting practiced in organizations with actually would be required. Thus, most of the cases, organizations failed to make an effective contribution to the expanded intellectual program.
The article has taken four hypotheses for conducting the research. Firstly, an independent world has been taken into consideration for conducting the research. An inner meaning said that events in the world are free of control of wishes of human subjects. This hypothesis values in the literature because new scientific thinking is full of creative ideas which must be evolving in nature. Thus, the concerned careful observations related to the accounting research might be varied.
The second hypothesis assumed that events of the research are part of this world. In other words, the outcomes of such events are not the part of outside world.
Thirdly, the observations of the research are not completely unconnected to the world. By this hypothesis, the research has maintained a realistic approach towards the normal people.
Fourthly, the purpose of the enquiry at the level of intellectual is for gaining the importance to the world so that the entire research could contribute towards a particular direction.
To conduct the research, the article discussed many theoretical frameworks for understanding the scientific contribution. For testing hypothesis, Popper’s criterion has been discussed (Dunmore, 2016). This helped to understand the cause of distinguishes of creative ideas among many scientists. Evidence suggests that observations can be varied with different creative ideas. By this theoretical discussion, the variable nature of careful observations of natural scientists has been verified and tested the hypothesis as well. Therefore, the practicality lies on the use of the theoretical applications of the research.
This article approached diverse concepts of literatures. This helps in discussing the procurement of data for conducting the intellectual research related to the accounting research. The acceptance of the article comprises with the inclusion of the several viewpoints in the literature. For instance, the interpretative research program has been discussed, although the article has mainly concentrated on intellectual observations of the researchers. Thus the article has broadened its acceptance. Secondly, the research has incorporate mainstream accounting research program in contemporary decades despite its criticisms among others. The author has shown full support towards the application his research on applied accounting along with mentioning deficiencies in its implementation into the research. Thus the author does no hide the limitation of his own. Thirdly, the author has given examples for better understanding the positive approach in accounting research. This holds the practically of the research.
However, limited theoretical framework has been used for testing the hypothesis. Secondly, the author has discussed both per perspectives of economic and accounting during the analysis of scientific research program. It creates several confusions among the critics of the article.
Conclusion
By the above discussion of the positive research, it has been observed that current practice of accounting has fall short while approaching careful observations. Furthermore, it has been determined that theoretical models are not helpful for getting involved in intellectual research for accounting because models are evolving with times.
References:
Christensen, H. B., Nikolaev, V. V., & Wittenberg?Moerman, R. (2016). Accounting information in financial contracting: The incomplete contract theory perspective. Journal of Accounting Research, 54(2), 397-435.
Dunmore, p. (2016). Half a Defence of Positive Accounting Research, (Massey university , wellington
Giddens, A. (2013). New rules of sociological method: A positive critique of interpretative sociologies. John Wiley & Sons.
Penman, S. (2013). Accounting standard setting: Thoughts on developing a conceptual framework. China Journal of Accounting Studies, 1(3-4), 157-167.
Whittington, G. (2015). Measurement in Financial Reporting: Half a Century of Research and Practice. Abacus, 51(4), 549-571.
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