ACCOUNTING ACCOUNTING THEORYTHEORY

Amadila Aigar (12105340Amadila Aigar (121053400303))M. Irhas Ervan (1210534027)M. Irhas Ervan (1210534027)

CLASSIFICATION

SYNTACTIC

SEMANTIC

PRAGMATIC

NORMATIC

NATURALISTIC

POSITIVE

PRAGMATICPRAGMATIC

DESCRIPTIVEDESCRIPTIVE An inductive approachAn inductive approach

PSYCHOLOGICALPSYCHOLOGICAL Observation on users’ Observation on users’

response to the response to the accountants’ outputsaccountants’ outputs

Problem of Psychological Pragmatic

Illogical mannersPreconditioned response

Not react when they should

SyntacticSyntactic – in linguistic – syntac is he – in linguistic – syntac is he study of the rules @ “patterned relation”, study of the rules @ “patterned relation”,

SemanticSemantic – referred to as rule o – referred to as rule o correspondence @ operational definition. correspondence @ operational definition.

SYNTACTIC AND SEMANTIC SYNTACTIC AND SEMANTIC THEORIESTHEORIES

NORMATIVENORMATIVE

TRUE INCOMETRUE INCOME DECISION –DECISION –USEFULNESSUSEFULNESS

Normative theories Normative theories

- - Decision-Decision-UUsefulness sefulness --

Positive TheoriesPositive Theories PositivismPositivism or empiricism means testing or or empiricism means testing or

relating accounting hypotheses or theories relating accounting hypotheses or theories back to the ‘experiences’ or ‘facts’ of the back to the ‘experiences’ or ‘facts’ of the real world.real world.

ExplanatoryExplanatory PredictivePredictive

SCIENTIFIC APPROACH SCIENTIFIC APPROACH APPLIED TO ACCOUNTINGAPPLIED TO ACCOUNTING

MISCONCEPTIONS OF PURPOSEMISCONCEPTIONS OF PURPOSE

•ISSUES FOR AUDITING THEORY CONSTRUCTION