10-04-2017, 08:52 PM
Several approaches have been applied over time to the formulation of a theory of accounting formulation. Some of these approaches are known as "traditional" approaches, because they are characterized by the absence of a vigorous verification process in the attempt to develop an accounting theory. Traditional approaches constitute conventional research rather than new research flows that rely on traditional reasoning to formulate a conceptual accounting framework. Among these approaches we can distinguish:
1. non-theoretical approaches;
2. The deductive approach;
3. the inductive approach;
4. the ethical approach;
5. the sociological approach, and
6. the economic approach.
This assignment examines each of these approaches in terms of their contribution to the theory of accounting formulation and in terms of their relative advantages to accounting for the theory of differences construction and verification the nature of a theory of accounting formulation and methodologies for The formulation of an accounting theory.
The nature of accounting: several images:
The Terminology Committee of the American Institute of Certified Public Accountants initially defined accounting as follows:
Accounting is the art of recording the classification and summary in a meaningful way and in terms of transactions and monetary events that are partly financial at least and interpret the results thereof.
More recently, accounting has been defined with reference to the concept of information:
Accounting is a service activity. Its function is to provide quantitative information, mainly of financial nature, on economic decisions, in the reasoned decision making between the courses of action.
These definitions refer to accounting as an "art" or a "service activity" and imply that accounting encompasses a body of techniques that is considered useful for certain fields. The Accounting Manual identifies the following areas in which accounting is useful: financial information; Determination and planning of taxes; Independent audits: processing of dates and information systems; Cost accounting and management of national income accounting and management consulting.
The counters are based on different images of the accounting process to elaborate different theories of accounting formulation. Before examining the traditional approaches to accounting formulation theory, it would be useful to examine some of the images that have shaped the evolution of financial accounting. These images are countable as a language, accounting as a historical record, accounting as a current economic reality, accounting as an information system, accounting as a commodity and, finally, accounting as an ideology.