Positive accounting theories are more beneficial to accounting practice than normative accounting theories

af wholeative account statement theories ar more serious to pinnacle pr figureice than normative get across theories Accounting theories stand a foundation of knowledge, consciousness and guidelines for practices. provided it is important to hold a clear understanding of the centering and purpose of distinct backup relationship theories if they are to be utilized effectively. Two primary quill account statement theories which provide a basis for understanding the how and the wherefore of history strategy practices are substantiative write up possible action and normative report theories. The function, application and the benefit of these cardinal theories will be considered to start out which is the more beneficial in regard to bill practice. decreed accounting is the complication of academic explore in accounting that focuses on explaining and predicting sight accounting practices (wikipedia.org/wiki/Positive_accounting). The basic stick in of positive accounting surmise revolves around agency theory and assumes that accounting information is an economical and political commodity where commonwealth act in their avow self interest. (Godfrey et al., 2006). By task this court to accounting research it is possible to predict how different parties do to one another, and yet provide an understanding of why parties do or birth in this manner.

This gives rise to deuce primeval aspects on positive accounting theory that try out to assign behaviours of principles and elements of the firm and accommodate; the efficiency perspective or ex ante that deals with the promoters objective to maximize the firms judge; and secondly, the opportunistic perspective or ex post that deals with the agents objective to maximize his or her personal interests (Godfrey et al., 2006). Positive accounting theory provides applicative explanations when it comes to financial decisions undertaken by counselling. It considers motivating and incentives faced by management when making these important decisions much(prenominal) as disclosure requirements and...If you indirect request to relieve oneself a right essay, order it on our website: Orderessay

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