country
$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Question:

What is the Issue in Accounting Theory ?
 
 

Answer :

Introduction

This essay aims to provide a critical analysis of the article ‘Half a defence of Positive Accounting Research’ by the author Dunmore. The essay analyses the strengths and weakness of the article that intends to examine the contribution of positive accounting theory in broader research program. The article is about examining the significance of positive accounting approach in the field of accounting. It tends to highlight the deficiencies in the positive accounting approach and thus proposes the use of better theoretical concepts in accounting research. The main argument presented in the research paper is ‘whether positive accounting theory is effective in achieving scientific objectives of accounting research’ (Dunmore, 2009). The critical analysis of the article in the essay is conducted by summarising its main points, identifying research questions, discussing its theoretical framework and discussing its significance and limitations to be used in future researches.

Summary of Article

The research article aims to provide an in-depth understanding of the positive approach used in broader accounting research program. The main ideas presented by the author in the research article are centred about depicting the importance and weaknesses of the positive accounting theory. The theory was developed by Watts and Zimmerman in the year 1970 and it was based on natural science phenomena. The theory was based on natural science phenomena and thus was considered to be largely effective in achieving the scientific objectives of accounting research (Dunmore, 2009).  Accounting researches mainly involves practical testing of accounting predictions and therefore requires implementation of theoretical framework based on scientific phenomena. As such positive accounting theory was believed to be largely useful to be used in accounting researches in comparison to normative accounting theory (Ghnabari et al., 2016).

 

Normative accounting theory was based mainly on theoretical principle of accounting and has no practical orientation. On the other hand, positive accounting theory is developed on the basis of scientific principle and thus was considered to be useful in achieving practical outcomes of accounting research (Chatfield and Vangermeersch, 2014). The article, in this context, has examined the contribution of positive accounting theory in the accounting field. The article has illustrated the weaknesses of positive accounting theory and thus has proposed the adoption of better theoretical approaches in accounting research (Wickramasinghe and Alawattage, 2012). The literature review section of the article has presented the views and opinions of different authors on the use of positive accounting theory in accounting research programs. The research article has emphasised about the limitations of positive accounting theory in attaining the practical outcomes of accounting research. Thus, the article provides a solid base for future researches about analyzing and examining the usefulness of positive approach in accounting researches (Dunmore, 2009).

Research Question

The research questions of the article have been identified through critical examination of the literature review section. The literature review of the article is centred about analyzing the importance and weaknesses of positive accounting theory in the field of accounting. The article intends to provide an answer to the following question as analysed from its literature review ‘Does positive accounting theory can be applied in achieving scientific objectives of accounting research.? (Dunmore, 2009). In addition to this, the research study also seeks to address the following sub-research questions:

  • What is the importance and weakness of positive accounting theory in the field of accounting research?
  • What are the main advantages of positive accounting research in comparison to other theoretical model used in accounting researches?
  • Does there exist a need for the adoption of better theoretical model in accounting research as compared to positive accounting theory?
 

Theoretical Framework

The theoretical framework of the research article originated from the literature review section. The views and opinions of different authors about the research topic are presented within the literature review that develops the theoretical framework of the research article. The theoretical arguments of various authors emphasises on the weakness of positive accounting they that makes it relatively incapable to attain successfully the practical outcomes of accounting research. Watts and Zimmerman developed positive accounting theory and claimed it to be largely useful in testing the accounting predictions developed in accounting researches. This was due to the development of the theory on the basis of scientific phenomena as comparison to other theoretical models use in accounting that is based on theoretical principles (Rhonheimer, 2000). Watts and Zimmerman have claimed that the theory of positive accounting is based on explaining the cause and effects relationships that is essential for carrying out accounting researches. However, different authors in the research article have proposed that positive accounting theory is mainly based on value judgement. Thus, the theory seems to be inappropriate for achieving the practical outcomes of the accounting research (Burns and Needles, 2014). The different authors in the literature review section of the research article have proposed that although positive accounting theory have enhanced the understanding of various accounting phenomena but it is not useful in testing of accounting predictions (Dunmore, 2009).

The main contribution in highlighting the deficiency of psoitiev accounting theory comes from Popper’s falsification criterion. The author has proposed that the development of scientific accounting theory is based on sequence of steps that forms the basis for its acceptance or rejection. The theories developed are accepted a scientific theories if they meet the requirements as stated by Popper. The first step in the falsification criterion of Popper is observing and examining the preliminary ideas proposed from the theory. This is followed by testing the observations for analysing their scientific basis. The quantitative testing of predictions is essential for achieving reliable empirical evidences. The predictions tested need to be quantitative in nature as they are more susceptible to falsification. This is followed by testing the predictions of the new theory against the outcome achieved from previously established theories. Thus, the new theory developed is accepted as scientific if it meets all of the above stated criteria’s. The theory of positive accounting need also to be analysed and examined on the basis of all the above stated requirements to be accepted a scientific. The various authors have questioned on the acceptance of positive accounting theory on scientific basis as it is based mainly on value judgment (Deegan, 2014). The theory is mainly said to be based on rhetorical approaches and therefore its utilisation in achieving practical outcomes of accounting research is put under debate (Bazrafshan and Talebina, 2016). The author through the present article has proposed that better and improved theoretical models need to be used in accounting research programs. The field of accounting has largely been evolved since past few years and therefore the theory of positive accounting presently is not found to be suitable in achieving its outcomes. The theory should be used in combination of other theoretical approach for effectively meeting the practical based outcomes of accounting research (Dunmore, 2009).

The accounting researches are mainly carried for proposing the selection of an accurate accounting method in order to resolve a complex accounting issue. The management of large and complex business organisations usually conducts accounting research for selection of a particular accounting method to resolve an accounting problem. Thus, accurate selection of accounting method is essential for enhancing the performance of business organisations. The accounting researches mainly involve practical testing of accounting predications for selection of an appropriate accounting solution (Kabir, 2007). The theory of positive accounting thus seems to be inappropriate in carrying out practical testing of accounting predictions. Therefore, it is highly essential for researchers to use better and improved theoretical models in field of accounting that can effectively carry out practical testing of accounting predictions. Thus, the overall theoretical framework of the research article has identified and analysed the deficiencies of positive accounting theory to be used in broader research program (Dunmore, 2009).

Significance and Limitations of the Article

The research conducted in the present article hold high significance in the domain of accounting. It will provide valuable insight to the future researchers about the influence of positive accounting theory in accounting researches. The future researches can carry out an in-depth analysis about the main deficiencies in positive accounting theory. It will also be helpful for future researchers to understand the nature of theoretical models that should be used in accounting researches. The theory of positive accounting has been used in accounting researches since a long period of time. The present research study, in this regard, has undertaken an important analysis to identify the deficiencies of this theory. This will improve the scope of accounting and also enhance the quality of accounting research in future context. The development of better theoretical approaches to be used in accounting researches will help in improving the business performance of organisations. The resolving of critical accounting problem through the use of better theoretical approaches in accounting will help business organisations to improve their financial performance. Thus, the research study is highly significant and important for development of accounting field (Dunmore, 2009).

 


However, there are few limitations of the research article as identified during its critical analysis. The main limitation of the research article is that the analysis carried out is lengthy and complex. The research study has mainly incorporated the use of qualitative data in proposing theoretical conclusions. However, the overall qualitative analysis carried out in the research article is very lengthy and therefore can cause the lack of interest in readers. The readers might lose their interest as the analysis presented is not attractive for achieving the attention of the readers. The research should have involved quantitative analysis in addition to qualitative analysis for demonstrating empirical evidences against the theoretical conclusions proposed. The lack of practical evidences in support of theoretical conclusions also proves to be a major limitation of the research article. This has impacted the credibility and validity of the research study to be used by future researchers. The theoretical findings of the research study in absece of practical evidences do not seem to be reliable to be used in future research study. The future researchers need to practically test the theoretical findings proposed by the author though the research article before their use in any research study. The theoretical findings proposed are based mainly on the views and opinions of different authors and there is no incorporation of primary data that involves providing practical evidences in support of theoretical findings. As such, the personal contribution of author towards the research topic is not much as he has only emphasised on the views and opinions of other authors. Thus, these all are the limitations of the research article that might impact its credibility to be used in future research context (Dunmore, 2009).

 

Conclusion

The research article has effectively presented the deficiencies of positive accounting theory. The author has drawn the attention of accounting researchers towards use of better theoretical models for enhancing the scope of accounting research. The argument presented by the author in the research article has been analysed and examined on the perspectives of views obtained from different authors. However, the major limitation of the research study is that it is based mainly on qualitative analysis. The lack of empirical evidences in support of theoretical findings might impact its validity to be used in future researches to be held in this context. Apart from the above limitation, the research article holds high significance in contributing to the development of accounting researches. The development of better theoretical models as compared to positive accounting theory for conducting accounting research would prove o be highly beneficial in resolving accounting problems faced by businesses to  large extent.

 

References

Bazrafshan, M. and Talebina, G. 2016. Challenges Positive Accounting Theory. International Journal of Basic Sciences & Applied Research 5 (2), pp. 119-122.

Burns, J. O. and Needles, B.E. 2014. Accounting Education for the 21st Century: The Global Challenges. Elsevier.

 Chatfield, M. and Vangermeersch, R. 2014. The History of Accounting (RLE Accounting): An International Encylopedia. Routledge.

Deegan, C. 2014. Financial Accounting Theory. McGraw-Hill Education Australia.

Dunmore, P.V. 2009. Half a Defence of Positive Accounting Research.

Ghnabari, M. et al. 2016. PAT (Positive Accounting Theory) and Natural Science. International Research Journal of Applied and Basic Sciences 10(2), pp. 177-182.

Kabir, H. 2007. Positive Accounting Theory and Science. Journal of CENTRUM, pp. 136-149.

Rhonheimer, M. 2000. Natural Law and Practical Reason: A Thomist View of Moral Autonomy. Fordham Univ Press.

Wickramasinghe, D. and Alawattage, C. 2012. Management Accounting Change: Approaches and Perspectives. Routledge.

Download Sample

Get 100% money back after download, simply upload your unique content* of similar no. of pages or more. We verify your content and once successfully verified 100% value credited to your wallet within 7 days.

Upload Unique Document

Document Under Evaluation

Get Credits into Your Wallet

*The content must not be available online or in our existing Database to qualify as unique.

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2018). Issue In Accounting Theory. Retrieved from https://myassignmenthelp.com/free-samples/issue-in-accounting-theory.

"Issue In Accounting Theory." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/issue-in-accounting-theory.

My Assignment Help (2018) Issue In Accounting Theory [Online]. Available from: https://myassignmenthelp.com/free-samples/issue-in-accounting-theory
[Accessed 06 July 2020].

My Assignment Help. 'Issue In Accounting Theory' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/issue-in-accounting-theory> accessed 06 July 2020.

My Assignment Help. Issue In Accounting Theory [Internet]. My Assignment Help. 2018 [cited 06 July 2020]. Available from: https://myassignmenthelp.com/free-samples/issue-in-accounting-theory.


MyAssignmenthelp.com provides guaranteed satisfaction with a commitment to complete the work within time. Combined with our meticulous work ethics and extensive domain experience, MyAssignmenthelp.com is the ideal partner for all your homework/assignment needs. We pledge to provide 24*7 support to dissolve all your academic doubts. We are composed of 3000+ esteemed experts who have been empanelled after extensive research and quality check. MyAssignmenthelp.com provides undivided attention to each assignment order with a methodical approach to solution. Our network span is not restricted to US, UK and Australia rather extends to countries like Singapore, Canada and UAE. Our assignment help services include thesis help, case study help, homework help, coursework help, MBA help and Programming help. Get your work done at the best price in industry.

Latest Accounting Samples

HA2032 Corporate And Financial Accounting 9

Download : 0 | Pages : 12

Answer: Introduction: The report is prepared to address different requirements by referring to the financial report of selected company listed on ASX. A detailed analysis of the financial statements for two consecutive financial periods have been presented. Amor limited has been chosen to critically evaluate the different aspects of the financial statements. Report demonstrate the understanding of the capital structure and different sources o...

Read More arrow Tags: Australia 5 Corporate and Financial Accounting Holmes Institute 

MAA319 Estate Planning And Insurance

Download : 0 | Pages : 15

Answer: Introduction The role of the adviser has been to provide the client with the financial advice and planning in order to gain their financial goals and objectives and enhance their wealth for the customers by exploiting their strategies that would be out of the scope of the client. The financial plan would be including your details and facts which would be helping me to formulate appropriate advises for the products which is to be sugge...

Read More arrow Tags: Australia 5 Estate Planning and Insurance Deakin university 

BE113 Management Accounting II Coursework

Download : 0 | Pages : 8
  • Course Code: BE113
  • University: University Of Essex
  • Country: United Kingdom

Answer: Introduction: The issue presented in the case study is that Orange Mount Bikes had been considering the introduction of the new braking system that permits the bikers for descending the slopes are steep by utilizing the newly developed braking pattern. The firm has been considering launching a new line of products having the newly developed design of brakes. However, it must be noted here that the firm utilizes target costing as a par...

Read More arrow Tags: Australia Colchester Management EDLE641 Values and Leadership University of New South Wales 

HI5017 Managerial Accounting 13

Download : 0 | Pages : 15

Answer: Introduction: The objective of preparing the paper is to critically evaluate the relevance and the challenges of the budgeting systems adopted in the organization by conducting a review of the literature. For this purpose, a peer reviewed journal article is required to be selected on “Use of Budgeting as a management technique for managing resources”. The chosen article for evaluating the system of budgeting adopted in any...

Read More arrow Tags: Australia Melbourne 5 Managerial Accounting Holmes Institute 

ACCG3015 Accountants In The Profession

Download : 0 | Pages : 3
  • Course Code: ACCG3015
  • University: Macquarie University
  • Country: Australia

Answer: Introduction Just like a doctor, the accounting profession is an area that has different specialties’, such as tax consultants, auditing, and bookkeeping, among others. In this profession, one can either opt to be employed or engage in private practicing. This paper will discuss two accountant professional identified from LinkedIn, my brand and a critique of it. Profiles I identified Vijay Mistri, who is CEO at Rentadirector L...

Read More arrow Tags: Australia Eastwood 5  Accountants in the Profession Macquarie University 
Next
watch

Save Time & improve Grade

Just share Requriment and get customize Solution.

question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

1,356,327

Orders

4.9/5

Overall Rating

5,080

Experts

Our Amazing Features

delivery

On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.

work

Plagiarism Free Work

Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.

time

24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.

subject

Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.

price

Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

2115 Order Completed

97% Response Time

Kimberley Chen

MPA in Accounting

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1758 Order Completed

99% Response Time

William Martinez

MS in Biology

Washington, United States

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

93 Order Completed

100% Response Time

Jackson Mitchell

MiM (Masters in Management) in Supply Chain Management

New Jersey, United States

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 4/5

3076 Order Completed

99% Response Time

Emily Wei

Doctor of Philosophy (Ph.D) in Civil Engineering

Singapore, Singapore

Hire Me

FREE Tools

plagiarism

Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.

essay

Essay Typer

Get different kinds of essays typed in minutes with clicks.

edit

GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.

referencing

Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.

calculator

Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability

1

1

1

Your Approx Earning

Live Review

Our Mission Client Satisfaction

I received full marks. So happy with the service. Will definitely come back for future assignments.

flag

User Id: 411395 - 06 Jul 2020

Australia

student rating student rating student rating student rating student rating

the work was completed before the time in a professional manner. Thanks to the team.

flag

User Id: 450130 - 06 Jul 2020

Australia

student rating student rating student rating student rating student rating

100 grade , perfect paper ,i am very happy to work with great expert. Thank you

flag

User Id: 353631 - 06 Jul 2020

Australia

student rating student rating student rating student rating student rating

it is done, I just want to thank you for this assignment, your help is very important, I really appreciate, good job!

flag

User Id: 265909 - 06 Jul 2020

Australia

student rating student rating student rating student rating student rating
callback request mobile
Have any Query?