HI6025 Accounting Theory and Current Issues

Develop the habit of considering those issues at the planning stage of their research. Similarly, referees of critical papers might press authors to test the theories that they use against competing alternatives.For their part, authors might develop a more critical attitude to the approaches that are now accepted. This is, of course, a personally risky strategy: referees and editors seem to be more comfortable with a paper which uses an approach consistent with a previously published paper. Changes in approach need to be carefully defended, while repeating the same approach need only be supported by citing the precedents.

The current study aspires to offer critical analysis regarding the given article “Half a Defence of Positive Accounting Research”. In this specific study, broader importance has been given on the concept of positive accounting theory and aims to provide a crucial description regarding the behaviour of the human in the accounting approach. Moreover, the current study explained the broader approach of positivist research strategies that are susceptible to various limitations in real world. This study reveals the most complex nature of the accounts that are associated with various models that are exceptionally dependent on the research hypothesis and these are associated with the lack of numerical values (Bonin 2013).

The current study has conducted the review on the positive accounting approach successfully and found out various limitations that are associated with the contributions of the research project. The research will emphasize on various features after analyzing the hypothesis from the research in association with the explanation given in the method, so that there can be a smooth information flow from the research study. The study has been performed to offer a broad overview of the concept and in-depth analysis of each strategy that are required to be analyzed to reach the final conclusion. Thus, the research framework will enable the reader to get a clear idea regarding various considerations and obligations related to the article and those are properly justified with explanation (Miller and Power 2013).

In the research study “Half a Defence of Positive Accounting Research”, the analysis regarding the positive approach has been analyzed along with the accounting research. From the study, it has been identified that in accounting segments, positive approach are still in practice where specific limitations are present for fulfilling the scientific goals after selection of the illustrative papers. There are limitations in the positive accounting research that are explained through considering the papers in association with auditing literature. Therefore, it is identified that the future prospects of Kuhnhian revolution and issues are suitable taken into consideration and will assist in achieving the positive accounting approach. The study also signifies that it is crucial to identify the limitations so that the suggestions can be recommended after the completion of the study.

This study aspires to provide detailed explanation regarding the logic and obligations related with the testing of statistical hypothesis. It shall further be noted that the study is a dilute version of the logic state by Popper acquisition. It is identified that even if the technological issues get resolved, there would still be higher chance that the hypothesis test will be failed. This is mainly owing to the reason that every test out of 20 can get rejected by wrong reason. In other word, there are inherent technical risks and are judged as null hypothesis that are depended upon the associated assumptions. Thus, it is identified from the research that there is a need for the implementation of better measurement approach for carrying out a accurate testing from the theoretical models that are established in the accounting system.

It has been further explained on the Popper criterion that the induction alone is not sufficient for proving the exactness of any theory. To be more specific, four descriptions are there that can be used for the measurement of error, inadequacy of relativity theory and internal and external impacts. It is further notified through the research that any particular theory cannot be said to be unreliable unless two or more theories are selected from the available options (Rogers and Van Buskirk 2013).

Research hypothesis

The concept research hypothesis is established to identify the positive accounting research’s validity. The hypothesis for this particular study will be as follows:

H0: There exists an universe beyond the imagination level of the people

H1: The dealings that are carried out in the world have specific reasons and are associated with the universe at the same time.

H2: Normally, people can acquire great level of reliable information source associated with the events that take place all over the world in association with vigilant observation

H3: The purpose of intellectual property that are used as observations for acquiring global idea of the universe in case of causation

The H0 hypothesis can be evaluated through generating various examples of positive research within accounting. It is identified that process of rational self-interest is interrelate with other groups who convey result and opinion in assessing the positive theories of accounting.

With regard to testing of H1 hypothesis, it is crucial for the researcher to discuss the scientific ontology and epistemology as it states that research related to positive accounting are not the same in nature with regard to accounting research. Therefore, it is important to support the that is not selected to be carried out randomly particularly from outside of universe

The H2 hypothesis is tested through discussing the hypothesis testing and falsification for implementing the action validity. Apart from this, the stated theory needs proper analysis of facts where the primary ideas can be implemented. Further, it is crucial for the anticipants to test the new theory in comparison with new findings from the given circumstances where the new and old theories make specific expectation (Needles, Powers and Crosson 2013).

Finally for testing of H3 hypothesis, it is crucial to utilize different models that are focussed on measurement. This is to say that the mental models can be utilized for mapping the causal processes that take place in the universe.

Theoretical framework

Various theoretical frameworks are there that can be used to assist in attaining the aims and objectives of the study.

Occasion of positive research in accounting

Auditors are mainly makes the decision through using the rules and regulations that are based on set standard and professional suggestions to academic practitioners. The activities under balanced self-interest between parties are taken place where the result of accounting phenomena is implicit through express contracts for various kinds of organization. Apart from that, the choices regarding the accounting are covered under the managerial reports and price decision from the auditor’s aspect. It is crucial to take into consideration the fact related to determination of information type assists the investor while taking decisions regarding the investment. This activity actually presumes the human behaviour that are rational and are not included under the theory of positive accounting.

On the other hand, after carrying out suitable investigation by the researcher, it is identified that the settings of accounting takes place in the absence of coherent behaviour, for instance, methods used by the auditor in making professional judgements. The research can be of any type that is expected to get proper idea of the causes and nature of the accounting phenomenon after following the research epistemology and ontology. Various examples are there that can be assisted for demonstrating the positive research program that are much broader as compared to the positive accounting theory. It is important to have a better tool for measurement as compared to those is used in the given study so as to increase the quality of decision-making process in future years (Biondi and Zambon 2013).

Scientific ontology and epistemology

Epistemology is scientific ground where mainly various approaches are explained that are available for getting knowledge of the whole universe. On the other hand, ontology states the operations and the association for answering the queries. It is identified that the universe cannot be assessed by avoiding the human contribution and the explanations given by the various participants. Complications arises from the epistemological and ontological both where the main objective is to acquire proper knowledge regarding how accounting phenomenon can be a useless activity. Human beings are socially developed through their duties as there is close relationship that explains that explains that the human beings as the social group does not have a purposeful survival and where the activities and the participants are not caused due to any of rational activity (Gaffikin and Aitken 2014).

Various issues are there that are associated with the positive research approach as it intends to find the underlying reasons. Further, various research segments are also there that have wide range of objectives that are present during a particular period of time. It is therefore necessary for explaining the general behavioural where most of the accountants and the auditors are more likely to behave in a predicted manner. Thus, there are various behavioural causes are there that cannot be identified in this objective world (Henderson et al. 2015).

Requirement of effective positive research program 

There is a requirement of analytical procedure that will assist in formation and testing of theoretical models. For developing the analytical procedures under the positive accounting research approach, it is crucial to take into account the epistemology in association with ontology to identify the movement from the tractability to plausibility. There is also the requirement for an efficient research program that can resolve the above analysed issues prevailing in accounting field. It is recommended that there is a requirement for change in measurement process rather than only testing the process. With regard to accounting, there is a dealing related to strong publication against and in dimension that excludes while same is related to given theory. The reason behind this is the shortage of resources in the accounting field and unavailability of sufficient resources at the same time (Guthrie and Parker 2016).

Limitations and Significance of the study

Various limitations are there that can be analysed from the above research study and it is identified that the research will not lead to the alertness of human behaviour with regard to the current accounting context. It takes place due to the lack of real life data collection from the efficient sources. Various limitations that are found from the study is that there is lack of significant primary as well as secondary data that have an impact on the quality of research. Further, researcher had drawn the conclusion on the basis of the author’s statement who had their own view on the concept of positive research accounting. Thus, the quantitative features are not addressed properly that is a major aspect in the present scenario as it assists in assessing the future growth aspects of the company (Crawford and Lepine 2013).

It was identified through the research that the wider gap among the present activities of positive accounting and the requirement of making relevant contributions to wider intellectual program. Apart from this, there is absence of optimized system where it is required to modify the issues after rectifying it. This article aspires to provide rational knowledge regarding scientific research where the research is validated only after participation from the accounting groups. The above research helped in analyzing the reality that there is requirement of better theoretical approaches that will be more reliable. Thus, the study proves that positive accounting research is one of the quantitative models that are minimized for statements of the projected trends that are present between the two variables (Bromwich and Scapens 2016).

Conclusion

It is concluded from the above research that, human behaviour are logical in nature and the whole thing does not happen from the positive accounting theory. Therefore, it is crucial to take into account the quantitative side of accounting that are required to be prioritized for projection of the future growth of the organization. It is recommended that some theoretical models that are used in the article are required to be altered so that it give detail of testing from the accounting variables. It is further required to establish a better tool for measurement and processing a rigorous testing for the theoretical approaches. It is furthermore crucial that the concepts need to be developed after conducting the findings from proxies that are related to the present reliable sources.

References:

Bromwich, M., and Scapens, R. W., 2016. Management Accounting Research: 25 years on. Management Accounting Research, 31, pp.1-9.

Crawford, E. R., and Lepine, J. A., 2013. A configural theory of team processes: Accounting for the structure of taskwork and teamwork. Academy of Management Review, 38(1), pp.32-48.

Guthrie, J., and Parker, L. D., 2016. Whither the accounting profession, accountants and accounting researchers? Commentary and projections. Accounting, Auditing & Accountability Journal, 29(1), pp.2-10.

Henderson, S., Peirson, G., Herbohn, K., and Howieson, B., 2015. Issues in financial accounting. Pearson Higher Education AU.

Gaffikin, M., and Aitken, M., 2014. The Development of Accounting Theory (RLE Accounting): Significant Contributors to Accounting Thought in the 20th Century. Routledge.

Biondi, Y. and Zambon, S. eds., 2013. Accounting and business economics: Insights from national traditions. Routledge.

Bonin, H., 2013. Generational accounting: theory and application. Springer Science & Business Media.

Miller, P. and Power, M., 2013. Accounting, organizing, and economizing: Connecting accounting research and organization theory. Academy of Management Annals, 7(1), pp.557-605.

Needles, B.E., Powers, M. and Crosson, S.V., 2013. Principles of accounting. Cengage Learning.

Rogers, J.L. and Van Buskirk, A., 2013. Bundled forecasts in empirical accounting research. Journal of Accounting and Economics, 55(1), pp.43-65.