Loading in 2 Seconds...
Loading in 2 Seconds...
Research methodology for the formulation of an accounting theory . 1. Inductive Method: Involve reasoning from the particular to the general. (Example: if every hare which we have observed eat grass ,by induction ,we may induce that all hares eat grass). .
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Involve reasoning from the particular to the general. (Example: if every hare which we have observed eat grass ,by induction ,we may induce that all hares eat grass).
Involve reasoning from the general to the particular . (Example: if all hares eat grass ,we may by deduction ,infer that some hares eat grass) .
1.According to time(1915-stewardship Acc.), (1945- Decision usefulness),(1975- Responsibility Acc.).
2.Inductive & Deductive.
3.Normative & positive.
1.Structural or (syntactical) theories.
2.Interpretational or (semantical) theories.
3.Behavioural or (pragmatic) theories.
- Theories explaining accounting practices are desirable to obtain greater insight into current practices ,permit a more precise evaluation of traditional theory ,and permit an evaluation of existing practices that do not correspond to traditional theory.
- This theory attempts to explain current accounting practices and predict how accountants would react to certain situations , Or how accountants would report specific events .
- These theories related to the structure of data collection process and financial reporting.
1. Who are the users of published financial statements.
2. What is the type of the specific information wanted by the several user group.
3. Will general purpose financial statements meet the needs of all types of users.
1.Nature of accounting theory.
2.Roots of accounting theory.
-“Accounting is what accountant do ,therefore, a theory of accounting my be extracted from the practices of accountants.
- No generally accepted theory of accounting, but there are a number of accounting theories has made by (FASB) to formulate a comprehensive theory of accounting .This is due to the difference in perception of “users” and “environment”.