Wednesday, December 4, 2019

Literature on Positive Accounting Research

Question: Critically Analyse the Theoretical and Practical aspects of a range of Current Accounting Issues. Answer: Introduction Through this review, it will be analyzed and interpreted that the positive accounting research is the part of wider scientific project. Positive accounting theory has been considered as the starting point while making the paper but later on the more focus has been laid on the positive accounting research project. He narrated that the positive accounting theory will only provide the understanding of the behavior of individuals and the positive accounting research on the hand describes the relationship between the cause and effect of the human behavior. Positive accounting research is then considered as the wider scientific project which will provide the results with exact causes and the figures. The main aim of the paper is to analyze whether the positive accounting research is a wider project and will provide maximum contribution towards the field of accounting by helping in analyzing the human behavior in detail. With this aim the study has been prepared and now the review has been conducted to give insights about the positive accounting research. The review has been bifurcated into small sections detailing the essence of the article. At first the introduction has been which includes the main aim of the study and the structure which has been followed throughout the study and also including the argument on which the study has been based. Then the summary of the whole article has been written down as to the aim of the study and what contributions the study has made to the field of accounting. Then the question of research is identified and its significance and value has been mentioned in whole of the study. It has also detailed whether the same has been flowed through out the literature or not. Then the structure of the study has been reviewed and it has been identified whether the study has followed the proper and defined structure. Thereafter the significance that the article has received and the limitations that the article has suffered have been discussed in the detail and at the end the review will be ended up with the due conclusion. In this way, the review has been differentiated between six major headings excluding the introduction and for each the critical review has been conducted. Summary of the Paper The paper has been named as half a defense of Positive Accounting Research. It in itself details that the paper supports the research program rather than the positive accounting theory and has detailed that the positive accounting research will be helpful in analyzing the cause and effect relationship of the behavior of the people working in the large and complex organizations (Williams, 2012). The main aim of the study is to lay down that the positive accounting research as the wider scientific project. The aim has been tried to achieve by the use of practical examples and also with the use of theories. Both of them have been in the different manner and entail that though the positive accounting research program is wider scientific project but it has been failed at the end to establish as due to the half failure in Popper Falsification method and thats why the requirements of the successful research project has been laid down. He has argued in almost all the ranges of the paper very differently. At the first he argued that the positive accounting research is the wider scientific project and to support that fact he has come with the science hypothesis which entails that the author only wants to establish the fact by the use of old theories or the new theories. Thereafter the perception of the human working in the complex organizations has been argued. He argued that the positive accounting theories only have considered the financial matters but the positive accounting research has considered both the financial and non financial matters. His argument has led him to the adoption of Kunh Model, Poppers Model and many others and has found different answers from each model. Thus, to summarize the paper has contributed to the world with the relevant process and results. Question under Study The paper has been aimed with different questions and all the questions have been flowed through the literature. Without any problem or question no will conduct any research because the research and the work undertaken without any cause will be futile. Therefore, problem is very necessary part of any kind of research. The first question for which research have been conducted is identified as the justification with proper tests as to why the positive accounting research will be considered as the wider scientific project as against the positive accounting theory which is only a part of it. The second question of research is that whether the positive accounting research will be able to make the readers to know whether the positive accounting research by any ways help to analyze the human behavior coupled with the rationality which is the main assumption for any kind of research. If it has not been assumed that the individual is rational in his behavior then the research would not have b een done. The third question that whether the positive accounting research have gained significance or not and whether the limitations has also been suffered while conducting the research. These questions of research have gained value at each and every stage of the research. At first, the research question has gained value when the Watts and Zimmerman has supported the fact of positive accounting theory being a part of the positive accounting research (Trang and Thao,2016). Thereafter, the theories for older period have been mentioned and the same have also supported the second question of research as the theories have led the path to find and analyze the human behavior employed in the complex organizations. Then the popper falsification technique has further increased the efficiency of selecting the research question as the hypothesis if auditor and auditee relations ship has been greatly explained. Thus, in this way the value of the research question along with the research made h as been enhanced and details that the same have been followed throughout the literature with no doubt irrespective of the fact that whether the results of theories have led to positive results or negative results. Structure for Study Structure for study shows how the research has been undertaken and under on which framework. The structure may be defined or not defined. The defined structure will always lead to the better results with firmness and also led the employee engaged in the organization to perform their very efficiently and effectively without any kind of confusion. On the other hand if the employee works without the defined structure then of course all the employees will have one doubt in their minds as to how to complete this task by performing which functions. Therefore, structure is required for any kind of work as it provides the wall within which the organization needs to function. The author in the paper has developed a very wide network and it cannot be said that the paper does not contain the proper framework. In the beginning the author has laid down the reference to the old theories starting from the assumption made in science as: World of different communities exists Any event which takes place in the world so defined shall be the reason of the community present in world The normal people will have fair idea of how the event has happened The main motive is to understand the world within which the research is being undertaken. This theory has been very well neglected when it was mentioned that the world may include things like demons etc or any other thing which is impious in the nature. Thereafter the theory of the Georgia have been cited which has been able to explain that no one exists and if something exists then no one can obtain knowledge of it and by chance any person gets the knowledge of it then the same person will not be able to communicate to other people (Christenon, 2016). To some extent this theory is correct but at the end it has also been failed as if this would happen the people will not be able to judge the human behavior and will not be able to understand the cause and effect relationship of the actual human behavior. Most importantly if it is assumed that nothing exists then the question of research will itself gets defeated. Thereafter the Kuhn model has been framed which details that the prize form winning the game of solving puzzles, etc will be given on hit and trial basis. It will not give any assurance that the winner is an intellectual person rather it provides the prize to the elite working in the same group. At the last the author has used the popper falsification criteria in which he has used two measures one is auditee and the other one is auditor and have been able to come up with the results. But due to some deficiencies in the research program, the results have not been met. Thus, the study has conclusive and best framework. Acknowledged-Significance and Limitations At each and every step of the research the author has himself acknowledged the significance as well as the limitations found while conducting the research. Due to this acknowledgement the author has been able to achieve the research with the best results. While starting narrating the whole research area, the author has itself acknowledged that the Kuhn model as described will not fit into the positive accounting research area (Inanga 2005). It is because the Kuhn model is applicable to the group of people or certain class of people or elite. Whereas the research has been conducted on the individual basis and therefore the same cannot be applicable to the research. Secondly, he has mentioned the theory of Georgia and after mentioning the same has neglected the same from the view of the theologians stating that through Galileo telescope everything can be seen including the unwanted things. At the stage of explaining the difference between the positive accounting theory and the positive accounting research the major difference that has been notified is that the first helps in understanding the human behavior while second helps in explaining the cause and effect relationship (Hauschild and Reimsbach,2015). Through this an article has gained significance because of the fact that the positive accounting research has been given more importance than the positive accounting as envisaged in the topic and discussion of the paper. Thereafter while going through the popper criteria, the author has used the relationship of auditor and auditee for better explanation of the human behavior in the complex organization and that too in the accounts settings. Although the criteria has gained the significance but at the time of results has given the major limitation by laying the requirements that must be required before adopting any research program and have stated that the theory which itself cannot be proved with the observations is the scientific project (Ghanbari, 2016). Thus t he author has again acknowledged the limitation. Apart from having these limitations, the article or paper has gained very importance in the field of accounting and more importantly in understanding the relationship between auditor and the auditee considering the both financial as well as the non financial factors. Conclusion Positive accounting theory and positive accounting research both are very important to understand the behavior of the humans employed in the organizations. The positive accounting research has been considered as the scientific research project and has gone through the hypothesis testing also to test check whether the questions of the research have been solved properly by the research project so undertaken. The review has been conducted and the research question have been properly defined thereafter the framework or substance within which the research has been undertaken has been defined. Thereafter the significance and the limitations which are there in the paper including those which are duly acknowledged by the author have been listed. Although the research has been defined by various theories and results but same has provide the meaningful results. In order to conclude the research has been focused on the importance of understanding the cause and effect relationship of the humans in the accounts working in complex organizations. References Christensen, H.B, (2016). Accounting information in financial contracting: The incomplete contract theory perspectiveJournal of Accounting Research,54, 399-424. Ghanbari, M., (2016), PAT (Positive Accounting Theory) and Natural Science available at accessed on 14/04/2017.. Hauschild B and Reimsbach D, (2015), Testing vs Building accounting theory with Experimental Research: Insights from management research, Journal of Behavioral Accounting and Finance, Vol.1, 83-89 Inanga (2005), The failure of accounting research to improve accounting practice: A problem of theory and lack of communication, Critical Perspectives on Accounting. Trang T and Thao P, (2016), Positive Accounting An effective trend for Vietnamese Accounting in the New Area, available at accessed on 17/04/2017. Williams P, (2012), The Logic of Positive Accounting Research, Journal of Accounting Organizations and Society, Vol. 14, 5-9

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