Research on Positive Accounting Theoryâ€Free Answers to Students

Question: Identify and Discuss the Theory and Concepts relevant to the Selected Article. Answer: Introduction The positive accounting theory is the new concept that has been laid down by the well known author Watts and Zimmerman and he has written the book on this topic Positive Accounting Theory. He has emphasized the importance of the positive accounting theory in the organizations and has lain down that the company will have help from this theory in understanding the behavior of the employees working in an organization and mainly in accounting department. The understanding will be base d only on the financial matters of the personnel working in the organization. After quoting the Watts and Zimmerman ideology in the first paragraph, the author has continues with the positive accounting theory and has rename it as the positive accounting research. The change signifies that the author has viewed the positive accounting research as part of the wider scientific project which will not only help the company having huge staff and work to understand the behavior of the personnel working in an or ganization but also will be helpful in understanding the cause of effect relationship of the human behavior prevalent in the organization. More emphasis has been laid down on understanding the cause and effect relationship as the subject of science will always help the reader as why something has happened and what are the effects for the same. Through this report the author has focused and lay down the importance of understanding the cause and effect relationship of the human behaviors and thus is the major aim of the study and thus to have scientific project is the main argument which has been flowed throughout the study. The report has been started with the introduction introducing the topic and the main aim and argument of the study and the structure that the paper has followed. Then the summary of the whole article has been explained detailing the main argument, what are the major findings and the arguments that have been flowed through the structure of the paper. Thereafter the question or element of research has been explained stating as to why the research has been undertaken including the importance of the research question and providing how the same has been flowed throughout the article (Kabir, 2011). Then the framework of the paper has been detailed. In this the structure that the author has followed in writing and article whether it is theoretical or practical the same has been detailed and also detailed how the framework has led the author to reach the question of research. Then the significance that the article has received from the various organizations and the reader has been discussed. Not only the significance the limitations have also been detailed and more interestingly the limitations that has been duly acknowledged by the author has more highlighted in this section. At the last the study has been concluded with the conclusion stating the outcome of the study. Thus, in this way the review has been framed. Summary After the introduction, the summary of whole of the article is very necessary to understand the basic purpose of the article. In the whole paper the author has very well argued that positive accounting research is the wider scientific project. He has come to this view because of the positive accounting theory that has been explained by the Watts and Zimmerman (Ghanbari, 2016). He said that the positive accounting theory if it is clubbed with the science then the organizations will not only have the idea of understanding the human behavior but also will help in understanding why the employees engaged in the organizations are behaving in the particular manner and what are the results that the company may have because of the behavior that has been noticed (Williams, 2012). The author has reached to this conclusion to treat the positive accounting theory as the positive accounting research only because of the fact that the science will be able to answer the why of any event or transactio n and the results of that event or transaction. The main aim of the study is to explain the cause and effect relationship of human behavior and the main argument is to view the project as the scientific research project. The author has supported his aim and argument with the use of the various theories of science, Georgia and practical framework of the popper who has used the statistical measures to achieve the results. The article has given worldwide contribution to not only the organizations but also to the individuals to provide them with the details to behave in the particular way and manner to give best to the organization. Thus, to summarize the whole article the positive accounting research has been viewed as scientific research project and aimed at explaining the cause and effect relationship of the human behavior of those working in the big organizations or complex organizations. Research Question The author has in the beginning of the article has categorically has mentioned that the Watts and Zimmerman has provided the positive accounting theory only making the people understand the human behavior of those working in an organizations but the author has lay down the importance of the understanding the cause and effect relationship of the same. It is well said by all the researchers that no research can be conducted without having the question of research clear and precise. Therefore, there should be clear question or element regarding which the research has been undertaken. The author has three questions which have been flowed throughout the article. First question is that whether the positive accounting research can be part of or viewed as the wider scientific project. It means whether the positive accounting research will be able to make the organization understand the cause and effect relationship of the human behavior like science. The second question that the author has f ramed is as to whether the research so undertaken has considered the financial matters or the non financial matters to understand the cause and effect relationship of the human behavior. Both of these questions are interlinked as science helps in explaining what are the factor that have led someone to act in particular manner or way and what can be the repercussions for that behavior. The same has been explained using the various theories and mathematical measures. The last question that has been considered by the author is that whether the project so undertaken shall have all the values that the other scientific project should have. All the three questions have been flowed very sequentially and hence have contributed to the wide end of the world organizations. Theoretical Structure The structure plays a very important role in any form of study whether it is related to the field of science or field of commerce or field of art. If the structure is developed in the haphazard manner then the work done or research so conducted will not provide the desired results as the organizations will be looking for. Thus, structure is considered as the backbone of each and every work. Structure is sometimes referred to as the framework or the lay out within which the work shall be performed. In the article also the author has laid down the proper framework and which has been followed very sequentially making the article useful and readable for the users. At first he has started with describing the Watts and Zimmerman theory explaining that: Theory will make the organization understand the human behavior of those working in an organizationTheory will explain only an in account setting which means that only on relation to those employees who are engaged in the preparation and presentation of the financial statements. Thereafter he has cited the scientific theories which explains thatA different world is in existence and which is in total independent of anyones imaginationEvent or transaction if any gets happened in that different world then the cause of the same is only those elements which are present and exists within the worldAny person who is rational and have common sense can understand or observe the event or transaction that have happenedAnd the observation will help the person to understand the cause and effect relationship of happening of the same event or transaction. This theory has been criticized by many people and says that there may be demonic powers also which can led that event or transaction. The author has further argued through the theory of the sophists commonly known as Georgia: In any kind of world whether same or different nothing existsAnd in case in that world something exists then any person having the common sense will have no information or knowledge about it andIn case that any person who is rational enough to understand anything got the information about that something then he or she will not be able to communicate the same to others (Trang and Thao , 2016). This theory has further been criticized by the theologians. And thereafter he has argued with the Kuhn model which describes that:There will be the puzzle or gamesThe games or puzzle will be played in the groupThe gift will be given to the winner of the game or puzzle within that group onlyAnd the gift so given does not depends upon the intelligence of the winner or knowledge he possessGenerally the gift is given to the Elite (Hauschild and Reimsbach , 2015). At the last the author has argued with the Popper theory of falsification of hypothesis that has lays down the calculations keeping in regard the auditor and the auditee relationship. This model has gain value in the article and at the end has been able to establish the results of understanding the cause and effect relationship of human behavior. Thus, the framework has led the author to reach at the research element. Singnificance and Limitations Along with the significance that the article has received from worldwide organizations and the readers of the article, the author has laid down some limitations in the article and which he himself has accepted while finalizing the research project. At the very first while describing the Kuhn Model, the author has himself accepted that the same model can never be fitted into the research project for which the author has undertaken the study (Christensen, 2016). In this model the gift is given to the elite and that too without relying on the intelligence of any person and rather gives directly to the Elite. It means that this model will never be able to provide the understanding of cause of such rewarding or distribution of gifts. Thereafter, while explaining the theories of the science and the sophists many group of people have disregarded it and have considered it as irrelevant whether they are theologians or other group. The same fact or limitations has been very well mentioned in t he article. Third limitation that he has acknowledged is that the research program so undertaken has been come out as weak detailing that the qualities that the scientific project shall have, have been lacking in the scientific project undertaken by the author. Thats why before conclusion of the article, the author has laid down the qualities that the scientific project shall have in order to become the successful research project. The same fact was further supported by the fact of Popper who states that the theory which cannot be disproved by it with the given observations can never be said as scientific theory. Thus, in this way the article has received the significance and the coupled limitations. Conclusion The review has been started with the introducing the topic and laying down the main aim and main argument of the study. The main aim of the study is to understand the cause and effect relationship of the human behavior working in the organizations and major argument is to whether the positive accounting research can be viewed as the wider scientific project. With this, the author has lays down the structure of study with the inclusion of proper theories and framework. Thereafter the author has mentioned the limitations and significance that the article has gained. Thus, to conclude, the article is very useful for the complex organizations. References Christensen, H.B, (2016). Accounting information in financial contracting: The incomplete contract theory perspectiveJournal ofAccounting 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 27-04-2017. 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 26/04/2017.. 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 26/04/2017. Williams P, (2012), The Logic of Positive Accounting Research, Journal of Accounting Organizations and Society, Vol. 14, 5-9