Formulation Method of accounting theory

Formulation Method of accounting theory

Formulate accounting theory or in other words, must have accounting research methods. Godfrey Belkaoui and be shot in the literature suggests the following methods.

1. Descriptive methods (Pragmatic)

In this method of accounting is considered as an art that can not be formulated, the formulation of the method of accounting theory should be explained or descriptive and analyze existing practices and accepted now.

2. Psychological Pragmatic

Here the observed reactions of users of financial statements to output accounting financial statements prepared from a variety of rules, standards, principles or guidelines. This field can also be called behavioral accounting.

3. Normative Methods (1950-1960)

Here accounting rules considered the norm to be followed no matter whether valid or practiced now or not.

4. Positive Methods (1970)

A method that starts from a scientific method is generally applicable or acceptable. Based on this theory, formulated the research problem or fenmena remedy observing actual behavior does not exist in theory.