Positive Accounting Theory and Science

Question: Discuss about the Positive Accounting Theory and Science. Answer: Introduction Every scientific research project in order to be successful requires the series of steps to be undergone. This series of steps depends upon the nature and the type of the research being undertaken. If the research is related to the topic which is more prevalent then the researcher will have enough material to conduct the research in the best manner but in case the topic of the research is not so prevalent and is new and is not very common to known to everyone then the researcher have to obtain number of documents and conduct number of experiments through which the researcher can reach the conclusion (Christensen,2016). In this report, the topic that the researcher has chosen is the positive accounting research. Though the positive accounting theory is known to everyone but treating the same as positive accounting research has created the wave among almost most of the economist and the accountants. The main argument of the author is that the positive accounting research is a part of t he wider scientific project in the sense that it will help in understanding the cause and effect relationship of the behavior that may changes in the organization. Thats why the topic of the report has been chosen as the Positive Accounting Research being the part of the wider scientific project. This report will start from the introduction detailing main argument which has been followed throughout the study. Then the summary of the whole research paper has been mentioned including the arguments and the contribution if any made by the study. Thirdly, the major issue for which the research has been undertaken has been defined. In this the review has been detailed of the value that the article has given to its users. Fourthly, the research structure has been detailed and how the same has helped the researcher to go to the research element. Fifthly, the importance of the research paper and its significance has been detailed with reference to the authors acknowledgement as different way s and in different manner. The study has then been concluded with the remarks as per the analysis and interpretation so made from the research paper. With these considerations, this review has been conducted and prepared. The positive accounting research has been emphasized through the whole of the study. The author has tried to bridge the gap between the research and theory relating to the positive accounting and has kept the positive accounting research over the positive accounting theory. The positive accounting research program is in itself is the wider topic and which the author has seemed it as the wider scientific project. In order to establish that the positive accounting research is the wider scientific project, the author has gone through the number of stories and has assumed that the human behavior is rational. He has not only referred through the number of theories but also has taken up the statistical measures to check whether the research problem has received the positive results or negative results (Hauschild and Reimsbach , 2015). Thus, in this way the author has focused on the main argument of the study. Further in the study he has argues that the positive accounting theory takes into account only the financial matters to analyze and interpret the behavior of the individuals but in the research paper he has very well explained that apart from the financial matters, the non financial perspectives on behalf of the individual should be analyzed and included in the study to formulate the better opinion and he has done the same in his paper. The study so made by author has given very wide contribution to the large and complex organizations in understanding the behavior pattern of the employees of the organization and what are the factors which led them to perform their functions in relations to the accounts in a particular way. And to further support this, the author has used the example of relationship as auditor and auditee and has conducted the statistical tests to know whether the program will be able to understand the cause and effect relationship of the individual. Thus, to summarize the paper, the research has contributed towards the finance and accounting are a. Value of Question of Research Every research has its own question and in order to resolve that the researcher performs the research conducts various experiments and interpret the results to the community affected thereby. As the topic of the research suggest, the question of research is more inclined on the term positive accounting research rather than the positive accounting theory (Kabir, 2011). The first and foremost question of the research is that the positive accounting research is the part of the huge scientific project. The said question has been construed by the author. He further argued that it is the science which can explain the reasons for happening or non happening of the certain event. Similarly in order to have the understanding of the fact that how the behavior of the individuals so employed and paid in the organization affects the preparation and finalization of the financial statements, the positive accounting theory have to be first construed as the bigger and huge scientific project for which the detailed study has to be made and that too with the help of lots of theories and the lots of the explanations. Thereafter, the author has second question which has led to the research. It says that while understanding the behavior of the individuals employed and paid in the organization, for performing the functions of the finance and help the company to prepare the financial statements, not only the financial matters to be considered but also the non financial and others matters should be considered to analyze and interpret the human behavior in the letter and spirit and that too with the proper and due reasons for happening or non happening in the setting of accounts or financials of the organizations. These are mainly for the people who operate the large and complex organizations. The third question of research is that the author has is whether the positive accounting research if undertaken as the wider scientific project has the capabilities of being the good scientific pro ject and he has argued and followed all the three questions of research throughout the study and at the end has very well mentioned that the positive accounting research project has not been the successful for not having the requirements as listed in the last section of the research paper. In this way, the research question has gained the value throughout the study and the author has maintained the rhythm and sequence of continuing the same. Structure of the Research Every research whether scientific or not shall follow the proper structure and it shall be in the chronological with the proper sequence otherwise it will not make the reader irritated but also the researcher as to how everything is going and will end up with the closing of research. The author has started developing the plan out after mentioning that the positive accounting research is the wider scientific project which will help not only in clearly understanding the behavior of the organization but also in understanding the reasons for happening or non happening of the same (Ghanbari, 2016). Thereafter, the author has started from the scientific hypothesis of imaginary world which is outside the control of anyone and states that: World of particular or different community exists Events that may happen in this world has so happened only because of the World only Any common man can infer the observations of the event so happened in the world and The main utilization of these observations is to have an understanding of the cause and effect relationship of each and every event so occurred. He has not stopped with this theory, now has argued with the old theory of group of people known as sophists which claims that: In this world nothing exists In case something do in place then no one can say he has knowledge of it In case he says that he does not have any knowledge of it then he will end up without communicating the same to other community in the world (Williams, 2012). He argued that both the theories have different ways of explanation and have different meanings. In order to have further understanding he argued that if such theory exists then the author would not be able to reach the conclusion. He has then mentioned the philosophies of old people stating that some people even refrain from seeing the telescope developed by the Galileo because of the fact that along with the good things the bad things can also be seen. Continuing with the same he has then totally changed the framework from old theories to the examples given by other premier authors. One of the main citations is of Watts and Zimmerman who states that the positive accounting research will be broader in its view and concept than the concept of positive accounting theory. At the end he claims that anything which describes the cause and effect relationship of anything can easily be defined as the scientific research. Research Significance The author has although used many theories, old or new, and many understandings but have mentioned the limitations too in the paper. He at the first stated that positive accounting research cannot be treated as scientific project. This statement has been drawn by the author on the basis of different facts and figures at different point of discussions. At first when he has stated the different theories of old scientific imaginations and that of the sophists he stated that if the research will conducted through this way then in no way the he would be able to perform and complete the research in an efficient and the effective manner. Further when was explaining the different examples given by the various authors including Watts and Zimmerman, he has stated that if some extra procedures would have been taken by the author then the research would have been completed in the different manner and would have given the better results to the users of the same mainly large and complex organizati ons. Third acknowledgement that the author has made in the paper at the time of describing the Kuhn Model (Trang and Thao, 2016). After describing the Kuhn model he has stated that the same cannot be fit in the scientific model and thus has served no purpose in the completion of the research. Last limitation that has duly acknowledged by the author and has been considered by him as relevant as it has hampered his study in all the ways. After describing the Popper criteria of hypothesis, he has stated that the theory which itself cannot be disproved can never be considered as the theories. After this statement, he has stated that although the study has been able to contribute to the field but has ended up with irrelevant conclusion because of the development of an ineffective research program. This has further led the author to mention the factors which shall be considered while developing any effective research program. Thus, in this way the limitations have been mentioned in the pa per. Apart from the above, the study has received the significance from across the world specially from the complex organizations who are now considering the same as the part of the internal control system as the organizations will be able to know how the employees of the company are working in regard to the account settings. Conclusion Positive Accounting theory has been considered as narrow and short concept in front of the positive accounting research project. The positive accounting research has been regarded as the best way to analyze and interpret the behavior of the organization to analyze why such kind of behavior has happened and why such behavior has caused the various effects in the account settings. The same fact has been analyzed and interpreted throughout the study so that the organizations will be able to understand the cause and effect relationship. Various theories have been mentioned along with the statistical methods for testing the viability of the project. To conclude, the study was detailed and has helped many organizations to develop sound internal control system. References Christensen, H.B, (2016). Accounting information in financial contracting: The incomplete contract theory perspectiveJournal of Accounting Research,54, 399-424. Kabir H, (2011), Positive Accounting Theory and Science, available at https://www.google.co.in/url?sa=trct=jq=esrc=ssource=webcd=2cad=rjauact=8ved=0ahUKEwjsj8vtt63TAhXFto8KHdnUA-oQFggsMAEurl=http%3A%2F%2Fcentrumwebs.pucp.edu.pe%2Fjcc%2Fdownload%2FfkAdf7sgitL2hEhNjN6NG6IR8_zLpDiuY-manPR1sDI%252Cusg=AFQjCNEUgpMfpj30pYQTWaUdvsNuJsqoQw accessed on 18-04-2017. Ghanbari, M., (2016), PAT (Positive Accounting Theory) and Natural Science available at https://www.irjabs.com/files_site/paperlist/r_2849_160224091446.pdf 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 Trang T and Thao P, (2016), Positive Accounting An effective trend for Vietnamese Accounting in the New Area, available at https://www.rusnauka.com/29_PMN_2015/Economics/7_198718.doc.htm accessed on 17/04/2017. Williams P, (2012), The Logic of Positive Accounting Research, Journal of Accounting Organizations and Society, Vol. 14, 5-9