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ACC303 Contemporary Issues In Accounting

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Question:

A coherent set of hypothetical, conceptual and pragmatic principles forming the general framework of reference for a field of inquiry (Hendriksen 1970, p.1)
• A scheme or system of ideas or statements held as an explanation or account of a group of facts or phenomena (The Oxford English Dictionary)
• Based on logical (coherent) reasoning, and not ad hoc in nature
• Different to a ‘hunch’ continued PPTs to accompany Deegan, Financial Accounting Theory 4e What is a theory
• A theory could be based on numerous observations (inductive reasoning) or developed on the basis of logic (deductive reasoning)
• Could be ‘positive’ or ‘normative’
• Theories can help us make sense of the world in which we live and can provide a structure to understand our (social) experiences
• What makes a theory a ‘good’ theory PPTs to accompany Deegan, Financial Accounting Theory 4e What is a theory.
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