Logic of Positive Accounting Research

Question: Discuss about the Logic of Positive Accounting Research. Answer: Introduction Every subject has its own way of development whether it is related to the subject of the science or economics or commerce or any other. Each and every field requires certain researches before its development and for the implementation and the understanding of the said subject the research will be the only documents for reference which can be used in all the ways. Researcher usually performs the steps wise function keeping in mind the main aim of the research and the consideration. These steps depend totally on the question of the research taken up by the researcher. Some research requires detailed and extensive steps to be taken while some researches require short and concise study. But the topic that the researcher has chosen in this study is considering the positive accounting as a research project and how far it is broader than the concept of the positive accounting theory and how far it has been made useful for the readers and the users to have maximum benefit out of it (Kabir, 2 011). With this aim and consideration, the author has conducted the research. He has started with the detailed introduction of the topic describing the main argument of the study and outlines the overview of the whole review and details the layout that has been framed for concluding the study. In the second section the summary of the whole paper has been given detailing that how the article has been able to keep focus throughout the study on the main argument. It has included the aim of the study and the analysis and interpretations made by the author in relation to the research conducted. In the third section, the facts have been mentioned which has led the researcher to undertake the research. These facts have been defined as the research question and in this section the importance of the same have been mentioned and the way has been described in detail as to how the same have been flowed throughout the paper. In the fourth section, after identifying the research question and after detai ling the flow of the literature, the framework or structure developed by the researcher to carry on the research have been explained and it has been clarified as to how the framework has helped the researcher to reach to the research element. In the fifth section, the significance of the article has been explained. Also the limitations which have been mentioned in the article and acknowledged by the author have been detailed. In the last, the paper has been concluded with the analysis and interpretation of the whole paper. Research Paper - Synopsis The article has focused on the scientific project and regarded the positive accounting research as one of the high scientific project which has to go through the number of experiments not that of chemicals related but with the mathematical hypothesis clubbed with the statistical measures along with the various applicable theories (Williams, 2012). The main argument that has been reflected in the study was to define and declare that the positive accounting research in much wider in scope and applicability then the concept of the Positive Accounting Theory (Ghanbari, 2016). For establishing and confirming this main argument the author has included the various theories including of sophists and others which has given the path to him to continue with the research without any doubt. Further he has adopted the mathematical measures which again have encouraged him but along with this encouragement he has received the criticism on the ground that the scientific research program has been the ineffective one because of the some inherent limitations which have not been overcome by the author. The counter arguments and the arguments have been mentioned in almost throughout the study and at the end of the research the study has been concluded with the significance as well as the limitations and has posed many areas where the rework is required. Throughout the paper, at each and every stage the contribution that the study is giving to the users and the society has been detailed and mainly for the big organization where the concept of the positive accounting research plays vital and significant role in the preparation of the books of accounts, financial statements and other functions. Along with the above the author has mentioned how far the practical framework applies to even non scientific research project in whole as compared to the theoretical framework. Thus, it is to summarize with the overall contribution made by the study. Without the presence of any question or problem, no one will proceed to conduct research. Thus, in order to continue with the research the researcher shall identify the question for which he wishes or wants to conduct the research and wants to have the desired answer. In this research also, the author has identified the research question and only after knowing that the research has been duly conducted with the proper and defined methods. First question that the author has mentioned in his article is that to know whether the positive accounting research can be treated as equivalent to the one as scientific research project. As described by the Watts and Zimmerman, positive accounting theory helps the organization to understand the behavior of individuals working in the organization. But as provided in the study, the positive accounting research not only helps in understanding the human behavior working in the organizations but also make the users understand as to how the behavior of the employees have changed while doing the business and what is the respective effect of that change has been received by the organizations. This question has gained value since its beginning and has ended up in the conclusion only. After the first question, the author has second question as defined in the paper to understand what factors are that affects the human behavior of the employee working in the organization. It may be financial o r non financial but the author has considered both for determining the cause and effect relationship. At this point the aim of the researcher as to establish that the positive accounting research is much wider in scope than the positive accounting theory has been established as the later only considers the financial perspectives for understanding the human behavior. Thereafter, the author has defined the third question as to whether the positive accounting research will have all the factors that the good scientific projects possess or not. All the three questions have gained much weight age in almost throughout the study and it has flowed sequentially and some time simultaneously throughout the review. Lay Out of Paper In order to have the successful research, the researcher shall first plan the layout of the research. The layout gives the way as to how the research is required to be conducted and completed in an effective and efficient and in an understandable manner. Doing any kind of work or research without having any layout of the same will be futile and will serve no purpose. In the article the author has followed the defined framework. In the first instance, the author has followed theoretical framework in which he has very categorically mentioned all the theories of different authors or group of the people in order to come to the relevancy of the study. At first he has mentioned science imaginative theories which consist of the following hypothesis: Something exists which is known as World and Something that happens in this world is only due the presence of some events in the defined world only and In common parlance any person can observe what has happened and These observations will help the observers to understand what the causes of the occurred event are and what will be the effects thereof (Trang and Thao , 2016). This has somewhat started the research but the author has reiterated another theory lay down by the group of people, Georgia: This World is of nothing and In any manner something exist then neither of the community present in world can have knowledge of it and In any manner one have then cannot tell the same to others. Both of these theories have been criticized by many people. To move further the author has adopted the statistical measures and has adopted the popper criteria of falsification of hypothesis. In this hypothesis, the author has considered two factors one on the X axis of the graph and the other one are on the Y axis of the graph. The two perspectives that has considered for the above analysis are the Auditor and the auditee (Hauschild and Reimsbach , 2015). The popper method has considered not only the financial matters like audit fees and out of pocket expenses, but also the non financial things like the adoption of the relevant accounting standards, disclosure of the relevant accounting policies or deviations if any observed as required by the regulatory framework. The chi square test has also been used to have more meaningful observations. Many observations have been formed from both the theoretical and practical framework and found them useful and relevant. Thus, the layout of th e paper is well defined and clear. Value and Limitations The value of any article is determined by the observations of the user and the readers. Similarly the limitation will be known only after reading the article. But in the current article under the study, though the significance needs to observe on reading the article, the limitation has already been mentioned by the author in the article itself and has acknowledged the same without any sort of resisting the same. One of the major limitation that the author has himself acknowledged is that the theories of scientific imagination and the sophists has not led the author to go to the research element and rather it has increased the chances of being unimportant study. It is because of the major fact that the both the theories have been considered as irrelevant by most of the people and people who understands it start believing as sort of irrelevancy (Christensen, 2016). The second limitation that has been very well acknowledged by the author is that non applicability of the Kuhn Model. In this model, the prizes were given to the group of people who plays it and are within that group. It is not given on the basis of the intellectuality rather it goes to the elite. After explaining the Kuhn model, the author has very well mentioned that the Kuhn model is not able to be fit to the scientific research that is going on and hence the same will not be able to explain the cause and effect relationship of t he human behavior prevalent in the organization. Third limitation which has further been acknowledged by the author pertains to the fact of having the unsuccessful research program. This fact has been mentioned by the author after explaining the Popper criteria of falsification. Due to this fact, the author has mentioned it as the unsuccessful research program and has given the success factors for having the better research program. Although the article has suffered by these limitations and that too acknowledged by the author, the article has gained significance in the terms of having the understanding of the human behavior working in the large companies. The significance that the article has gained has overcome the acknowledged limitations. Thus the article is meaningful for many companies. Conclusion This paper has started with the emphasis on the positive accounting research as compared to the positive accounting theory. The author has identified the importance of having the positive accounting research program in the system of many companies. He has supported his views through the theories of old and new theorists and also through the practical and mathematical measures. The framework that the author has developed throughout the study has been explained and informed in detail. Thereafter, the observations have been noticed and the significance and the limitations have been mentioned. Thus, in order to conclude the paper, the research that has been conducted by the author has not only served the individuals but in a very meaningful way has supported the companies to have better understanding of the change in accounting settings due to change in behavior. References Christensen, H.B, (2016). Accounting information in financial contracting: The incomplete contract theory perspectiveJournal of Accounting 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 18-04-2017. 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 14/04/2017. 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 17/04/2017. Williams P, (2012), The Logic of Positive Accounting Research, Journal of Accounting Organizations and Society, Vol. 14, 5-9