Accounting Theory and Current Issues Research

Question: Discuss about the Accounting Theory and Current Issues Research. Answer: Introduction The article Half a Defence of Positive Accounting Research focuses on positive accounting research which is the division of the academic project of the scientific research that helps to recognize and analyze the cause and effect relationships. The accounting setting is one in which main causes of the human behavior and attitude can be investigated in complex and large companies face to face communications are replaced by impersonal systems or less personal information system for decision making (Melis, 2007). To recognize both the deficiencies and importance of the research of positive accounting, wider intellectual projects have been reviewed with its epistemological and ontological assumptions. The article shows serious deficiencies and issues in the way that the positive accounting research is performed really which avoid making meaningful contributions to the wider project. A well establishment of positive accounting research will contribute to the technical research projects, an d the authentic purpose would be dissimilar (Norton, 2006). The discipline matrix idea shows that positive research can be the paradigm for solving the accepted puzzles within the social group that rewards and accepts such puzzle solving of intellectual or social contribution. Summary of the article The article Half a Defence of Positive Accounting Research by Paul V Dunmore represents the overview of the positive accounting researches based on the various theories. As per the Watts and the Zimmerman, the claims are made regarding the term Positive Accounting Theory which is depicted as one particular theory (Dunmore, 2009). This paper is considered for the describing the vast areas of the positive accounting and also it aims at the development of the research programs in the broader sense. The development of the casual explanations is depicted regarding the human behavior with the variation of the human behavior and thereby the PAT settings are created as an example. The examination of such program is depicted in the forms of the ontology and the epistemology, and with this, the logic regarding the statistical testing is undertaken for the continuation of appropriate testing. The Popper's falsification criterion is illustrated in this research with indicating the appropriate structures regarding the research. Although the program is based on the positivist research the research also deficits the deficiencies regarding the practices that are undertaken for the research. It also helps in illustrating the common problems which are included in the casual construction and thereby the enhancement of the theories are clearly indicated by the process of depicting the logic regarding the hypothesis and henceforth the research seems to be underlying the logic of hypothesis (Avel, 2014). As the lack of the interest of the numerical values is considered in this research and thereby the insufficient replication of the data is being undertaken for the purpose of considering the numerical values and thereby the other explanations provided helps in illustrating the appropriate approaches undertaken for the continuation of explanation of this article. However, appositive research is being depicted which also shows the appropriate research regarding the accounting and thereby it is capable of depicting the current practices undertaken in the form of positive accounting. The descriptions regarding the normal science are illustrated which seems to be fitting the positive accounting research (Bauman Francis, 2015). This helps in mitigating the crisis and also helps in upbringing the revolution which might be liberated for the positive research. Therefore, the potentials are depicted which clearly illustrates the understandings regarding the cause and the effects of the relationships as mentioned in this case and thereby the liberation of positive accounting can be achieved in an appropriate manner. As per the examination of this paper is illustrated, the ontology and the epistemology are the parts of the positive research which are undertaken for the continuation of the current practices. It also indicates the successful operation of the theoretical methods that are used for the specification of the highly vulnerable models and therefore the quantitative research process can be depicted. Apart from this, the main problem which is indicated in this case of positive accounting research consists of the direct consequences which are related to the ad hoc quantitative model and are also related to the statement of the predictable sign regarding the connection amid the two variables. The measurement of the variables is undertaken in an appropriate manner (Collin et al., 2009). The elaboration of the models is represented by the enhancement of the relationship between the two variables and thereby the analysis helps in depicting the appropriate analysis regarding the theoretical analysis that is undertaken for the research. The elaboration of the analytical research is undertaken which helps in illustrating the various concepts of the accounting and thereby the appropriate enhancement of the research can be undertaken for the study. Since the concepts are explained, the concepts must consist of the proper explanations with the findings that are clearly explained in this case. The measurement regarding the findings is explained which helps in the enhancement of the study. The other reliable measurements are done by the help of the re-estimating parameters and thereby the appropriate enhancement of the study is undertaken for the research. The significant research i s also undertaken which helps in identifying the theoretical predictions of the parameters which are mentioned in this article. As per the article provides the overview, the equivalent intervals are indicated which are important for the additional results (Dye Sridhar, 2008). Henceforth the appropriate justification can be provided to the data achieved for the purpose of the measurements of the data and henceforth the important concepts can be depicted for the betterment of the strategies. The measurement of the test concepts consists of the important concepts that are included for the appropriate enhancement of the article and also the acknowledgment of the results can be achieved for the betterment of the study. The need for the extensive replication is determined as the fundamental requirement and thereby the establishment of the limits of their applicability is considered which is used for the establishment of the limits regarding the tests conducted in this article. Henceforth the appropriate tests are undertaken to determine the competing theories against each other (Wolk, 2009). According to the nature of the research process, research question has been determined to focus on the topic: What is the importance of positive accounting research? Theoretical Framework The Watts and Zimmerman trademarked virtually the Positive Accounting Theory term which shows the positive research concept is a lot wider than their exacting theory. According to the author, accounting principle are originated by rational self-interest operation among the individuals who interact through implied or express agreement in different categories of companies (Kothari, Ramanna Skinner, 2010). However, the other areas of the positive accounting research have not drawn on the hypothetical representation. The self-interested and rational human behavior is appropriate about 80% of the time which is not defensible in the quantitative terms. Some of the accounting research analyzes the accounting setting behavior without assuming the rational behavior such as how the auditors makes their judgments, how the managers use judgment in the performance evaluation system, how managers continue in a wrong result in spite of responses indicating their mistakes and how different methods of presenting the accounting information affects the ability of the users to absorb it (Kieso, Weygandt Warfield, 2011). According to the author, positive accounting theory is not similar as the accounting investigates. The interpretive authors raise some of the open questions, questioning on each of the hypotheses which are the principle of the scientific research. The socially constructed feature and human agency of roles, institutions, practices, and relationships mean that social context does not have independent, objective existence, its events and participants in it need to have the rational causes. The concentration cause includes both the meaning and experiences of the social actors that describes their actions and live through a social interaction process to form a social reality objective. One cannot observe and analyze the globe apart from during individual experiences and descriptions of the participants; no fact objectives concerning the experiences are there (Horngren , 2013). Because of these epistemological and ontological difficulties, different programs aim at an objective to understand the reasons of accounting experience is useless. It is not the problem that the positive research program does not explore experience and meaning since its objective is to explore the causation. The investigation stream with dissimilar aims can coexist, and the research is not a logical objection to a stream that may fail to achieve the objectives of other. The intellectual program and scientific program is described as the positive research. However, it may be possible to explain the trends of attitude and behavior but in exceptional cases `agents can select to do something different. The significance and limitations of the article Positive accounting theory improved the perceptions of different accounting results. The theory has created significant approaches about the relationship between return on equity and accounting value and motivations of financial management reporting (Holton, 2012). The accounting practices have evolved through the interactions between many process and factors of changes in the accounting policies. Positive accounting research helped to shape the debate on the current fair value. The fair value discussion is focused on the concept whether the fair value should be viewed as the measurement feature in the financial statements. However, there is empirical evidence on the negative and positive aspects of the fair value. Positive accounting theory clearly states that the managers should manage their reporting earnings to manage their goals (Godfrey, 2010). According to the study, management manipulated the estimation of fair value. Positive accounting theory has stated the circumstances in which the managers can manage earnings. Auditing standards state that the auditor should determine and analyze the risks of significant disortation in financial statements. The analysis shows that hypothesis testing provides a very weak support evidence of a specific alternative hypothesis. The scientific research includes data collection whether it is quantities or qualitative. Sometimes, the theories suggest inductively by data accumulation, but the article showed that the induction cannot prove the correct theory. The effect of the process produces many disapproved hypothesis and a little set of hypothesis that has also been disapproved. It is significant to involve testing more than one theory in opposition to each other and not just trying a solitary theory. Observations falsify the single theory in the research cannon, but the observations can select decisively between two or more than one theory. Positive accounting theory also faced many problems (Godfrey, 2006). There was a prolonged debate whether the natural science methodology is current for the social science. The methodology of natural science can be used to analyze the social phenomenon. The science model materials are not appropriate to analyze the social sciences in different aspects. Conclusion The enhancement of the research questions with indicating the values depicts the significant enlargement of the report undertaken regarding the article. The article describes all the important are the crucial theories which are shown for the representation of the proper framework of theories are undertaken in this report. Apart from this, the research question is being provided for the proper enhancement of the report and thereby the significance and the limitations of the article undertaken for the research report are appropriately enhanced (Ghosh Wu, 2012). The summary of the article is being provided for the purpose of getting the illustration of the theories of which the article consists of. Moreover, the theories depict the accounting methods which must be continued for the betterment of the relationship and henceforth the various relationships are illustrated in this article for the betterment of the research. References Avel, D. (2014). Positive accounting theory: theoretical and critical perspectives.International Journal Of Critical Accounting,6(4), 396. Bauman, M. Francis, R. (2015). Issues in Lessor Accounting: The Forgotten Half of Lease Accounting.Accounting Horizons. Collin, S., Tagesson, T., Andersson, A., Cato, J., Hansson, K. (2009). Explaining the choice of accounting standards in municipal corporations: Positive accounting theory and institutional theory as competitive or concurrent theories.Critical Perspectives On Accounting,20(2), 141-174. Dunmore, P. (2009). 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