Summary 1 Introduction 2 Theories of Accounting 2 Public Interest Theory 2 Private Interest Theory 2 Regulatory Capture Theory 3 Is accounting Needed (GPFR)? 3 What does the financial department (accounts) do? 3 Why public disclosure became so serious? 4 Principal Agent Outlook 4 Agency Cost- Critical Reason for accounting frauds 6 Three Essential Accounting Areas 7 Capital Budgeting 7 Investments 9 Capital Structure 11 Trade off theory 12 Conclusion 13 References:
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`Accounting 6135‚ Advanced Accounting Theory Arthur G. Hendricks‚ Ph.D.‚ CPA professor BU 410 Thursday 7:10 PM to 10:00 PM Required Texts 1. Scott‚ W.R.‚ Financial Accounting Theory‚ 5th edition‚ Prentice Hall (Pearson Education Canada‚ Ltd) 2009 (ISBN 978-0-13-207286-1) 2 Concepts Statement #7‚ Using Cash Flow Information and Present Value in Accounting Measurements‚ FASB‚ February 2000. 3. Optional; The Wall Street Journal. You are expected to read the financial pages of the news media
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136 Positive Accounting Theory and Science JCC Journal of CENTRUM Cathedra ™ Positive Accounting Theory and Science by M. Humayun Kabir Senior Lecturer‚ Faculty of Business Auckland University of Technology‚ Auckland‚ New Zealand Abstract This paper examines the development of positive accounting theory (PAT) and compares it with three standard accounts of science: Popper (1959)‚ Kuhn (1996)‚ and Lakatos (1970). PAT has been one of the most influential accounting research programs
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Scientific management theory: As its name suggests‚ scientific management theory was invented at a time when adding the word ‘scientific’ to a process was still novel enough to count as its own thing. It’s also called Taylorism‚ after its 19th century inventor‚ Frederick Taylor. Fundamentally‚ it’s a system for exploiting your manpower to its maximum potential and streamlining your production to improve efficiency. It aims to bring to bear logic‚ rationalism‚ and other basic scientific values to
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Slide 1 ACCOUNTING THEORY & CONTEMORARY ISSUES (AT1) MODULE ONE Slide 2 ACCOUNTING UNDER IDEAL CONDITIONS Part 1 - Foundation items re the course Part 2 - Present value accounting under certainty Part 3 - Present value accounting under uncertainty Part 4 - Reserve recognition accounting Part 5 - Examination question examples Part 6 - Historical cost accounting Lecture by: Dr. A. L. Dartnell‚ FCGA Year 2009 - 2010 2 Slide 3 PART 1 Foundation Items re the Course Different Course
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ADM 4342 Seminar in Accounting Theory Turn OFF all cellphones! Once class commences‚ Computers should only be used for class work! You have a responsibility to make the classroom environment respectful and conducive to learning. Course Outline Introduction to Accounting Theory What does Accounting “Theory” mean? Defining “Theory” (Webster’s New Collegiate Dictionary) 1. A plausible or scientifically acceptable general principle or body of principles offered to
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What is Positive Accounting Theory? Positive Accounting Theory is the branch of academic research in accounting that tries to make good predictions of real world events and translate them to accounting transactions. This contrasts with normative accounting theory‚ which that tries to recommend what should be done. Positive Theories try to explain and predicts actions such as which accounting policies firms will choose and how firms will react to newly proposed accounting standards. Positive
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Positive Accounting Theory • Sometimes abbreviated as PAT • Explains and predicts accounting practice • Does not seek to prescribe particular actions • Grounded in economic theory • Focuses on the relationships between various individuals involved in providing resources to an organisation (agency relationship) • Owners and managers • Managers and debt providers Positive Accounting Theory • Assumptions of PAT • All individual action is driven
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references Cho‚ CH & Patten‚ DM 2007‚ ‘The role of environmental disclosures as tools of legitimacy: a research note’‚ Accounting‚ Organizations and Society vol. 32‚ no. 7‚ pp. 639-47. Cormier‚ D‚ Magnan‚ M & Van Velthoven‚ B 2005‚ ‘Environmental disclosure quality in large German companies: economic incentives‚ public pressures or institutional conditions?’ European Accounting Review‚ vol. 14‚ no. 1‚ pp. 3-39. Cowan‚ S & Gadenne‚ D 2005‚ ‘Australian corporate environmental reporting: a comparative
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The Importance of Accounting Theory to the Field Of Accounting The objective of theory is to explain and predict. One of the basic goals of the theory of a particular discipline is to have a well-defined body of knowledge that has been systematically accumulated‚ organized‚ and verified well enough to provide a frame of reference for future actions. The Webster’s definition of theory is the systematically organized knowledge‚ applicable in a relatively wide variety of circumstances‚ a system
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