The Demand for and Supply of Accounting Theories

It has been become an issue of great concern that the accounting profession must find a common theory in order to address and put the issue at rest. This therefore, has called for the study of this topic under review “the demand for and supply of accounting theories: the market for excuses. As a result of this several questions have been raised. For instance, the question of why accounting theories are predominantly normative has been put forward by this article? Secondly, why no single theory in accounting profession that is generally or widely accepted? It has been argued that the financial accounting theories have been found to be ineffective most especially in the area of impacting accounting practice and policy, though, this has been linked to the weaknesses in accounting methodologies.
This article went further to examine the demand for accounting theories in an unregulated economy and also the demand for accounting theories in a regulated economy. Coupled with these is the effective of government intervention on the demand for accounting theories. Based on this, the author has argued that government regulations seems to provide some sort of incentives mostly for individual lobbyist that proposed accounting procedure, therefore, producing a negative effective with regard producing a common accounting theory. From the look of thing one could argued that the changes political issues and scenario will also continue to create changes in the accounting theories. The author noted that the nature of accounting theories will continue to change as political issues change.
Conclusively, first, we need to understand the vital role of accounting theories in determining the accounting standard and therefore, the theories should be included in the process of determining accounting standard.
The Methodology of Positive Accounting (Juma’s assignment)
The problems of accounting theories have become a wide and global concern to the extent that some have aired their views