Accounting Theory

&
Current Issue

Grab the flash offer up-to 50% discount on Accounting Essay Writing Service at Instant Essay
Writing.
 TABLE OF CONTENTS
Table of Contents.........................................................................2

INTRODUCTION............................................................................3

Aim and Objectives......................................................................3

Research question.......................................................................3

Theoretical Framework................................................................4

SIGNIFICANCE AND LIMITATIONS OF THE ARTICLE.......................6

Limitations of theory.................................................................6

Methodology used in the article...............................................7

Limitations................................................................................8

CONCLUSION................................................................................8

REFERENCES................................................................................10

Grab the flash offer up-to 50% discount on Accounting Essay Writing Service at Instant Essay
Writing.
INTRODUCTION

Positive accounting theory is the effective tool which provides detail information related
to real world events and helps to translate all this predication into accounting transaction.
Positive accounting research is part of the wider intellectual project of scientific research which
helps to understand cause and effects relationship (Williams, 2014). As according to the concept,
of positive accounting to the manager and firm need to choose such accounting methods through
these concepts firm can represent their won performance significantly but these concepts has
some positive and negative impacts. Report will critically discuss about positive accounting
theory. In addition, assignments will discuss the hypotheses and its values in order to find out the
effectiveness of the model (Nassar, Uwuigbe and Uwuigbe, 2014). At last the study, make
significance and limitation of the article will be described in this report.

AIM AND OBJECTIVES

The main aim of the study is to identify the effectiveness of positive accounting theory.

Objective

⚫ To understand the concepts of positive accounting theory

⚫ To identify importance and limit positive accounting theory based on the article
⚫ To determining effectiveness of positive accounting theory
⚫ To make recommendation on accounting methods which assists in preparing useful
accounting reports

RESEARCH QUESTION
In this present report researcher used the statistical hypothesis which is considered as the
effective tool for conducting research on positive accounting theory. Through this tool, actual
objectives of the research can be achieved (Kim and Shin, 2015). Positive accounting theory is

Grab the flash offer up-to 50% discount on Accounting Essay Writing Service at Instant Essay
Writing.
the effective tool which provides detail information related to real world events. It is commonly
used in the quantitative positive accounting research and null hypothesis is done in computerized
manner. In this present report researcher use hypotheses which is appropriate and make able to
understand the usefulness of the positive accounting theory. As per the discussion, in this present
report facts are totally based on imagination and no one has control on the imagination. This
show that accounting figures can changes any time so mangers need to be prepared have to be
prepared for the modification and modifications should be made accordingly hypothesis. With
the help of this hypothesis scholar draw literature review (Branlard, Gaunaa and Machefaux,
2014) For conducting research both qualitative and quantitative both the methods has been used.
So it can be evaluated that with the help of this methods able to develop the hypothesis and by
this accurate results can be achieved by the researcher. On the other hand scholar make some
arguments that nothing is exists and even if it exits then people does not have any knowledge
about it. However, in some research it is found that if organization uses PAT then no
consistence and actual results in can be equal.

THEORETICAL FRAMEWORK
Positive accounting theory is great concepts that defines wide aspects of accounting. It
concepts includes different concepts innumerable computations, problem solving, give in depth
information in specific format

(Gunderson, and et.al., 2013). So can be analyzed and interpreted by people. It helps to them in
decision making process. To apply this concept on organization is choice of the manger but
apply this concept does not affect pricing and standards which is related to accounting decisions.
In order to make implication of the PAT concepts regulations is the biggest factor which
can influences the overall transaction and financial reports. PAT is effective financial tool that
assists to organization to predicts the accounting practices. It is based on three main hypotheses
which give in depth information about the accounting standards. PAT is that concepts which
practice concept on the basis of current situations (Madrid, and et.al., 2014). On the other hand
predication would always be right is not possible. So on the basis of this it can be say that this
Grab the flash offer up-to 50% discount on Accounting Essay Writing Service at Instant Essay
Writing.
model is not good all the time because of the company can not make good records. The positive
approach to the development accounting relies on the basic assumption that helps to policy
makers to make effective decision. It assumes that all the decisions that are being made would be
a result of rationally where accountants can follow the best options.

This research shows that predication can give accurate outcome. In this report it critically
evaluation can be on the basis of prices investors which make their decisions on the basis on this
theory (Williams, 2014). On the other hand there are some other accounting theory which give
completely different types of direction to the researcher. There are two types of accounting
concepts which can be used by normative or positive approach. The normative frameworks is
conceptual frameworks which is used by organization. This theory explains how and when
different entries of the financial statements should be entered or modified. Despite of all the
criticisms, the approach has still not lost its efficiency which is extremely

helpful when applied under different circumstances. This concept which concentrates on more on
the theoretical area and economic concepts (Nassar, Uwuigbe and Uwuigbe, 2014). Sot is can be
said that PAT does not focus perception and does not focus on improvement of accounting
practices. The positive approach does not alternatives in the existing approaches or principles in
case they are considered as irreverent. PAT make analysis only existing principles and make no
recommendation for the principles that need to be used.

In research found that PAT is not value free but it has some assumption. It described that all
actions are driven by the self interest, along with these there are no other facts which can be
mold. Critical researcher believe that testing the figures are not necessary that they give feasible
outcome. Some theorists believe that normative approach is the most logical way because it is
not based on current situation but provide clear picture on the ways to improve accounting
practices should be (Kim and Shin, 2015). Thus, it is clear that normative approach presents
extremely practical way methodologies for development and formulation of accounting theories.

Grab the flash offer up-to 50% discount on Accounting Essay Writing Service at Instant Essay
Writing.
On the other hand positive approaches only helps in analyzing and assessment the nature of the
methodologies adopted.

SIGNIFICANCE AND LIMITATIONS OF THE ARTICLE

Limitations of theory
Positive Accounting Theory is considered as the concept that possess various limitations
because of this accurate report could not be prepared by the firm. One of the main limitation of
PAT theory is that lack of prescription influences the implementation of the theory. However,
particular research assesses that it helps scholars to practice positive accounting within firm and
attain desired objectives (Beattie, 2014). Positive Accounting Theory helps in predicting so that
no prescription is provided by this model and thus it creates issues related to reality of the facts
and figures. Further. It also evaluates that such theory do not give any detailed information
regarding improvement within the accounting practice and thus helps firm to improve their
performance in market. Thus, through adopting such accounting practice it helps in
implementing theoretical framework so that deficiencies could be identified. Therefore, iti s
essential for businesses implementing PAT theory needs to bring improvement so that desired
objectives could be attained. Thus, proper strategy need to be implemented in regard to adopt
effective accounting theory and thus provide proper solution so that managers of firm could
overcome the same (Bublitz, Philipich & Blatz, 2015). However, if the managers does not
possess effective knowledge regarding PAT than it impacts upon the final report prepared by the
firm. Therefore, positive accounting required to be effectively practices so that lack of interest in
the numerical values impacts upon the implementation of accounting report.

Furthermore, another limitation faced by positive accounting theory is that it is not value
free while it requires certain cost for implementing it within business as it helps in identifying
self interest so that managers of firm faces problem in regard to carry out good accounting
practices. Through the given article on positive accounting theory it helps in developing
fundamental assumption that it does not help firm in accomplishing the study in an effective way
(Glover, 2014). However, it criticizes the researchers view point upon good accounting system
Grab the flash offer up-to 50% discount on Accounting Essay Writing Service at Instant Essay
Writing.
which results in developing self interest so that issues faced could be overcome. There is another
crucial limitation of PAT that it is stagnant and thus it creates issues for business that needs to be
overcome by adopting effective theory so that business could enhance their operations in an
effective way. However, such issues has been prevailing since 1970 but in current time
businesses have been added certain effective accounting system that results in overcoming the
major problems so that best results could be attained. Positive Accounting Theory helps
managers of firm to identify that implementing positive accounting pattern results in overcoming
the issues faced by firm and thus develop appropriate measures and improve accounting
practices (Wang, Che, Fan & Gu, 2014).

Methodology used in the article

Researcher uses several methodologies in regard to carry out study upon positive
accounting pattern and thus selects one methodology from qualitative and quantitative method.
Here, researcher uses qualitative method has been adopted that result in implementing PAT
theory within study. Further, exploratory research design helps researcher to carry out the study
in regard to implement the PAT theory. All such method results in collecting data and thus
obtains desired outcomes (Dufour, Teller & Luu, 2014). In the present research, descriptive
research deign has been used which results in providing accurate outcomes and helps researcher
to improve the PAT in order to implement good accounting system. Researcher also helps in
supporting the positive accounting theory through using qualitative research method and thus
helps manager in regard to implement positive accounting system and achieves desired results.

However, the main benefit of implementing qualitative tools results in providing accurate
results so that PAT could be effectively implemented. While, implementing such method helps
researcher to support the observation and thus collect the information through looking upon
effective accounting practices implemented within firm. Such research method is considered as
implementing results in obtaining positive outcomes regarding PAT theory and improving

Grab the flash offer up-to 50% discount on Accounting Essay Writing Service at Instant Essay
Writing.
accounting system within firm (Fernando & Lawrence, 2014). Through implementing such
theory it helps in obtaining effective subject and thus obtains knowledge about PAT.

Limitations

There are various limitations faced by researcher at the time of conducting the study upon
positive accounting theory. However, the main issue faced by researcher at the time of
implementing PAT is lack of time. Thus, it is one of the effective issue faced by researcher as
they need to review various articles based upon positive accounting theory (Beattie, 2014).
However, researcher faces issues related to time duration in regard to implement mathematical
formulas. Hence, they are not able to provide accurate results so that possible outcomes could be
attained. Moreover, another limitation faced by scholar is regarding lack of funds. Thus, it is
another major issue that restricts researcher to use the data for using PAT. Hence, these are major
limitations faced by researcher in regard to implement positive accounting theory.

Hence, all the limitation faced by researcher and thus it affects the study. However, it is
essential for scholar to obtain effective results and thus implementing appropriate objectives and
thus PAT could be implemented in an efficient manner. Also, it could be evaluated that
implementing theoretical framework helps in adopting effective approach and thus improve the
PAT within firm in regard to obtain positive accounting (Bublitz, Philipich & Blatz, 2015).
Further, implementing methodologies helps in selecting qualitative research and thus affects the
actual objectives of study so that desired targets could be attained.

CONCLUSION
It can be concluded from the study that through implementing positive accounting theory that
helps in preparing the accounting report and make crucial decision within firm. Also, it has been
identified that PAT theory possess certain importance as well as limitations. Therefore, it is
essential for researcher to overcome the identified problems and thus improve the performance
of firm. Researcher selects qualitative data in regard to explain the information and test the same.
Grab the flash offer up-to 50% discount on Accounting Essay Writing Service at Instant Essay
Writing.
 A Sample Report on Accounting Essay Writing

To Buy Complete Essay Writing Service from us:

Contact : +12139295632

Email: help@instantessaywriting.com

Web:https://www.instantessaywriting.com/accounting-essay-writing

Grab the flash offer up-to 50% discount on Accounting Essay Writing Service at Instant Essay
Writing.
REFERENCES
Books and journals
⚫ Beattie, V. (2014). Accounting narratives and the narrative turn in accounting research:
Issues, theory, methodology, methods and a research framework.The British Accounting
Review. 46(2). pp. 111-134.
⚫ Branlard, E., Gaunaa, M. and Machefaux, E., 2014. Investigation of a new model accounting
for rotors of finite tip-speed ratio in yaw or tilt. In Journal of Physics: Conference
Series (Vol. 524, No. 1, p. 012124). IOP Publishing.
⚫ Bublitz, B., Philipich, K., & Blatz, R. (2015). An Example of the Use of Research Methods
and Findings as an Experiential Learning Exercise in an Accounting Theory Course. Journal
of Instructional Pedagogies. 16.
⚫ Dufour, D., Teller, P., & Luu, P. (2014). A neo-institutionalist model of the diffusion of
IFRS accounting standards. Computational Economics. 44(1). pp. 27-44.

A Sample Report on Accounting Essay Writing

To Buy Complete Essay Writing Service from us:

Contact : +12139295632

Email: help@instantessaywriting.com

Web:https://www.instantessaywriting.com/accounting-essay-writing

Grab the flash offer up-to 50% discount on Accounting Essay Writing Service at Instant Essay
Writing.