Nobody downloaded yet

Normative approach and positive approach - Essay Example

Comments (0) Cite this document
Since 15th century accounting is having its existence in the business world. Among various source of income, business needs to maintain everyday transactions, this are known as accounting methods…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.4% of users find it useful
Normative approach and positive approach
Read TextPreview

Extract of sample "Normative approach and positive approach"

Download file to see previous pages Among various source of income, business needs to maintain everyday transactions, this are known as accounting methods. Accounting theory can be defined as the study, which helps to examine the methodologies of the assumptions, with their frame work in financial accounting principles. By the study on accounting theory helps to understand the review the historical foundations of the accounting practises and the way by which the verification on accounting practises is made and report to the relating regulatory framework which governs the financial statement and also the financial reporting (Evans, 2009, p.67). We also can say that a set of concepts which are interrelated, or descriptions or intensions which help to create a reasonable analysis on the incidents by identifying the relations among the variables that can be described as accounting theory. There is no single proper theory in financial accounting which may govern the process of accounting accurately (Belkaoui, 2004 p.125). There are differences in approaches, opinions, and values in accounting practise. In the year 2005 Deegan and Unerman stated that to understand the accounting theory a proper methodology is needed to justify the process (Most, 1977, p.56). Nowadays both economics as well as businesses are continuously evolving. Accounting theory is also changing with business and economy. ...
For the development of accounting theory several approaches have been made within the last two decades, among which are descriptive, normative, positive, decision making, empirical and welfare ones. However here we concentrate on positive approach and normative approach. Normative theory A normative theory can be defined as a theory, which does not depend on observations, but on the process by which it should be done. According to most of the researchers several different approaches are used in this theory to find a correct opinion about accounting. The formula is used in this method to find out the value what income is based on and not depend on cost. Here the opinions of the theorists are depending upon deductive logic, subjective opinion and inductive methods. On base upon this theory all the other theories are standardized. The other theories tend to give conclusion that some of the accounting rules are better or worse than the others. The normative theories generally depend upon the anecdotal evidence which may not pass the test of academic rigor (Porwal, 2001, p.245). On depending on the personal outlooks, consequent reasoning, and by using of elementary reasoning it aims to approve that there are several accounting practices which are better than others. It helps to understand what ought to be rather than what it actually is. In the part of theory construction the normative approach is likely to depend on the future related answer rather than on its present. That is like here we can find the answer of “what should be” rather than “what it is”. According to this theory, the theories will be more feasible and desirable, which does not depend upon the current ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Normative approach and positive approach Essay Example | Topics and Well Written Essays - 2000 words”, n.d.)
Normative approach and positive approach Essay Example | Topics and Well Written Essays - 2000 words. Retrieved from
(Normative Approach and Positive Approach Essay Example | Topics and Well Written Essays - 2000 Words)
Normative Approach and Positive Approach Essay Example | Topics and Well Written Essays - 2000 Words.
“Normative Approach and Positive Approach Essay Example | Topics and Well Written Essays - 2000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Normative approach and positive approach

Reseach approach

.... Constant consumption of junk food such as snack foods, potato chips, hamburgers influences health of many people. High level of calories contained in this kind of food makes people obese. Methods: Data collected for this research was based on questionnaires filled in by ethnical minorities in America who were randomly chosen. Answers to questionnaires obtained from Asians, Hispanics, and Afro-Americans were chosen from the Behavioral Risk Factor Surveillance System dataset (available at These answers were randomly collected through a telephone survey. People ages 18 and elder were asked about their attitude to physical activity, fast foods and junk food consumption. In case of positive answers people...
7 Pages(1750 words)Essay

Normative and Positive Economics

...?DQ1 Normative and positive economics refers to positions in regards to economic ments. Positive economics deals with facts or questions in regard to how things should be. When a person makes a positive economic statement biases or emotions cannot be a part of the equation. Positive statements can be structure in terms of what occurred in the past, what is occurring in the present and future probable economic outcomes. For instance an economist may state that lowering the prime rate will cause the inflation of the nation to go down. Positive economics is different than normative economics because these...
3 Pages(750 words)Essay

Accounting Theory - Comparison between Positive and Normative Approach

The study of accounting theory enables to understand our past and provide us with a positive reception of how our recent practices and problems came into being. A historical investigation also tells that certain problems are continuing and may not be capable of an everlasting solution, for example, accounting for intangible and changing price levels. The accounting theory’s development came up because of needs and changes in accounting concepts and techniques. The main purpose of accounting is to plan periodic matching of revenues and cost. The accounting theory is classified into positive and normative accounting theory. This paper will take into consideration the positive and negative approach of accounting theories; their...
14 Pages(3500 words)Essay

Nussbaums Approach, the Capabilities Approach

... that a country has good relations with their neighbours. Currently, the traditional attachment between the citizen and a country are sneering. These values and norms are being replaced by disjointed allegiance, which have taken root due to emerging political models, globalization and regional integrations. Nonetheless, Aristotle maintained that citizenship is more be being born in place or enjoying the same economic benefits. Conclusion From the above assessment, it is evident that Nussbaum’s approach on the capabilities approach offers important literature to disprove most of the Rawls’s theory of justice. This helped in strengthening justice and political processes, thus brought a new order in politics. The overall connection... on the...
7 Pages(1750 words)Essay

Humanistic Approach providing excessive freedom. It is important to note that, the humanistic theory make some assumptions about human nature, which are not accepted as solid or complete. One cannot adequately argue that every individual should be given freedom to choose what he wants or not. This is because some people may make negative choices even when right solutions are staring at them. These facts plague the humanistic approach to management and therefore establish the need to offer sufficient guidance for positive change to occur. Still, it may not be appropriate when managers are mean and misunderstand how their employees perform their assigned duties. When managers treat their employees like this, they get...
3 Pages(750 words)Essay

Decision Usefulness approach vs. Measurement Approach

...Decision Usefulness approach vs. Measurement Approach Table of Contents Decision Useful Approach 3 The Single-Pearson Theory 3 The Rational Investor 4 The principal of portfolio Diversification 5 The Optimal Portfolio Investment 5 Portfolio Risk 6 Measurement Approach 7 Reasons for Market Response 7 Market Efficiency of Securities 8 Ohlson’s Clean Surplus Theory 9 Auditors’ legal liability 9 Asymmetry of investor Losses  9 Role of Financial Accounting on both Approaches 10 Works Cited 11 Decision Useful Approach This approach motivates the application of decision models. The approach is based on the concept that if financial statements cannot be prepared correctly, then financial statements must be presented in such a manner so... as to...
6 Pages(1500 words)Research Paper

Systems Approach

...Systems Approach 2005 The System Approach presupposes that any living organism can’t exist separately from its surroundings, because ‘organisms are open systems: they cannot survive without continuously exchanging matter and energy with their surroundings’ [Kelly, G., p.168]. Open systems are said to interact with other systems outside of themselves, when this interaction has two ‘components: input, that what enters the system from outside, and output, that what leaves the system for the environment’. [Kelly, G., p.169]. The System Approach integrates both holism and reductionism. [Kelly, G., p.204]. According to this, the laws governing the parts determine or cause the behavior of the...
2 Pages(500 words)Essay

Phenomenology approach

...Phenomenology approach Phenomenology is a qualitative research design that explores people’s experiences, from the s’ perspectives, for knowledge development. Its construct that relies on the subjects’ subjectivity to understand motivational factors and behaviors offers a basis for developing solutions to the subjects’ wider population. This paper develops a qualitative research scenario that is based on Fine Motor Skill Disability and phenomenology research design. Fine motor skill disability refers to a person’s inability to control small classes of masses. Inability to manage muscle in the hand is an example and it affects people’s performance in academics, and in sports that involve fine movements. Its effects in...
1 Pages(250 words)Research Paper

Stakeholder Approach their status in the position they stand for in the organization, recognition and the pay. Employees on the other hand, out in their skill, time, knowledge, and energy and they are evaluated by the pay they receive. Conclusion For training to be effective all the requirements must be taken into account in any effort that is meant to design, develop and deliver value. To achieve this, one has to keep in mind the following concepts; determining all relevant stakeholders and their shared interests, make use of optimization and trade-offs have to come in handy. There is also need to develop key performance indicators for measuring performance, and develop a stakeholder approach...
5 Pages(1250 words)Essay

Absolutist Approach

...Absolutist Approach The situation with a distance runner and her use of illegal weight loss drugs should be evaluated fromdifferent perspectives. Absolutist approach is likely to explain her taking drugs as a deviant act with the help of which she wants to boost her performance and become a better athlete (Coakley, 2009). In spite of the fact that loosing weight is not illegal, it is illegal to use drugs that need prescription to do it. That is why by doing so she breaks the rules as otherwise she would not be able to get a hold of this drug. On the other hand, a constructionist approach would explain that the desire of the young athlete to boost her performance while ignoring the rules...
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Normative approach and positive approach for FREE!

Contact Us