Ideology and Rhetoric of Positive Accounting Theory

Question: Discuss about the Ideology and Rhetoric of Positive Accounting Theory. Answer: Introduction: The present report is focused on the critical evaluation of research study conducted by Paul V Dunmore. The topic of the study is Half a Defence of Positive Accounting Research, and it is prepared for Massey University, Wellington, New Zealand. Considered study is based on detail description of human behaviour in accounting settings. Provided study will focus on main argument and its contribution to the subject matter. On the basis of evolution, Significance and Limitations of the Article will be explained. In the last part of the study, main points of critical evaluation will be summarised in order to conclude the critique. A research study conducted by Paul V Dunmore is focused on positive approach regarding accounting research. Positive accounting research is considered to be a significant part of intellectual projects which assists in understanding cause and effect relationships in the accounting world. This accounting approach is divergent with the aspects of normative accounting. For a better understanding of the subject, matter study includes a review of intellectual projects along with its epistemological and ontological assumptions. The study also includes ways of improvement in accounting practices for the promotion of better practices that can be followed by individuals. The primary argument in this research study regards need of better theoretical models in positive accounting. These models are required to be specific and viable to use. Further, this article highlights ad hoc quantitative models are the major reason for the inappropriate progress of positive accounting. It is because these me thods are restricted to a quantitative relationship between two variables. Considered study specifies significance of effective measures in present era through which testing of theoretical models can be done in a rigorous manner. In addition to this, policy makers are required to consider these aspects in order to develop a better relationship with existing accounting concepts. Another argument in this research study is regarding devolution in consideration away from the hypotheses testing to guesstimate of parameters. For this purpose, confidence intervals are required to be considered for making a comparison with theoretical forecasts or with other equivalent measurements of those parameters from other pertinent research studies. A study conducted by Paul V Dunmore shows that there is a requirement of data archives for a significant conceptual framework for the purpose of testing. It is essential because these aspects will assist in future theoretical advances. Furthermore, critical qualitative research is a crucial aspect as considering a single theory as unproblematic. Research questions The present study is based on an evaluation of positive accounting research, and associated research questions with this assignment are enumerated as below: S. no. Research questions 1 Factors required to be considered for development of successful positive research program? 1 What are the ways of analytical modelling? 2 Is it viable to focus on measurement instead of testing? 3 Determination of viability of replication in a research study? 4 Determination of gap between actual and desired positive accounting? Theoretical framework The article specifies that many scientists do not recognise the description of their actions or behaviour. According to Kuhn, the same is eliminated as limitations are provided by the objective world for the same. The main emphasis has been provided on the limitations relating to positive accounting research by providing details relating to the drawbacks of application of positive accounting due to which the same is not being applied in the case of specific and vulnerable theories. The main problem which has been emphasised is agency; i.e. if humans have free will that their actions would not have acquiescent for the purpose of scientific study. The concept of free will cannot be compared and equalised as the concept of the Cartesian dualism of mind and body, as it is not specified that free will can be applied except in dualistic framework (Watts and Zimmerman, 1986). The decision taken by the mind are not in correspondence with other theories or model available in the world. The ma in requirement for applying the framework is analysing the constraints of the research as the same has not been supported by the other areas of accounting research. The report evolves discussion relating to the significance of quantitative and qualitative data in accounting research. The manner in which both kinds of data have been applied by the scientist in the formation of preliminary data has been specified in the article. In case falsified result have been concluded after application of old models in assessing new theories than in that case new theories are applied for getting valid results. Careful observation is specified in case of the creative idea in comparison to other ideas (Fogarty and Markarian, 2007). It is because; it has been observed many times that falsifications are inoperable in many of assumptions. Appropriate tools have been regarded as the basic necessity for concluding a successful research. It is also necessary that model must not be affected by the different environment factors relating to vulnerability. A few appropriate illustrations which have been presented in the article are: For assessing the significance and constraints of positive accounting research, it has to be reviewed with broadening intellectual project comprising ontological and epistemological assumptions. The value of relating literature makes efforts to infer from observed prices in comparison to the figures which have been applied by theorist in the decision for the development of the controlling system (Choi, Liu and Simunic, 2009). The fundamental theory of rational self-interested human behaviour is approximately eighty percent appropriate which concludes that it is not defensible in quantitative terms; however, it carries the rational human behaviour but considers exceptions as important. Positive science in terms of social science is only a century old and if the same is assessed in accounting matters than it is few decades. It has been observed that major obstacles have been faced in social science in comparison to physical sciences so one should not get impatient for the results (Wolk, Dodd and Rozycki, 2012). A variety of quantitative theories become more quantitative as they become mature such as Darwin's theory of evolution which has proven purely quantitative. However, a general mistake assumed by social science researchers that positive and quantitative researchers are same and continuing of the same assumption leads to issue such as understanding research as positive but qualitative (Chatfield and Vangermeersch, 2014). The study of Kuhn specifies that one cannot be part of the scientific community if he has not subscribed for the paradigm. The same can be understood with an example of a chess player, who is having his own rules cannot find another player who is ready to play by his rules. Normal sciences have been specified as a disciplinary area which is a combination of beliefs, attitude and policies so that the theorist applies the same in their researches for resolving a variety of problems. Kuhn argues that in case the old model could not support the theory of normal science and develops in the form of revolutionary cases than the same is replaced. The main variants which have been applied in normative science can be analysed with the assistance of normal science (Ardill, 2015). The social system makes efforts for assessing questions relating to human behaviour and assist in resolving the same through fewer efforts. It has been analysed that stability does not exist in doubt, but the same does not resemble the new system. Thus it is not necessary for the same to remain in correspondence with new system address for including longer period stem in existing formulated human behaviour context of accounting. The theory of positive accounting remains concerned with testing and developing theories. The significance of literature theory is important for evaluating figures which have been used for taking appropriate decisions. The primary model of balanced self-focus human behaviour is also emphasised on assessing the same (Whitley, 1988). The performance of theory is also evaluated on the basis of the pre-assumed human act in some of the models. Research which is aimed at analysing the reasoning of specific accounting phenomenon, in the case of non-rational aspects of human psychology, can be specified as positive accounting research. Several examples are not detailed when analysed as a whole, but an attempt has been made to explain entire research program on a broader scale in comparison to accounting model. Positive accounting is majorly emphasised on developing and analysing theories (Watts and Zimmerman, 2003). Therefore, those models which are related to researches of testing models have also been specified in the article. Normal science has been specified as a disciplinary area which is adopted by the members of a group for assessing solution of various results. The discussion of qualitative and quantitative data have been explained in detail so that appropriate application of same can be made by researcher and developers of the model. Significance and Constraint As Paul V Dunmore through its research article has served a valuable contribution to a deeper understanding of the human behaviour for further studies. The current research paper shall help in conducting future research by the policy makers to better enhance their theories by working onto the weaknesses involved in the model of positive accounting. Moreover, there is a substantial aspect of limitation in the analysis part also. The current practices work on the key outputs that comprise of the statistically meaningful coefficients though the interpretation could not be drawn in full to connect the suspected measures which are not in consistency with the stated theories and sample and which arent tested and whose application is assumed rather than validating it. The accounting research is able to extend a better understanding of its environment and causes that are related to studying of human behaviour. The analysis of Whitley, 1988 reports that the models and tools being used in conducting the analysis must be in tune with the objective of study which otherwise would have adversely drawn an impact on the consistency of study as a matter of shortcomings within the qualitative researches and hypothesis tests. Further, it can be seen that the system may not add to the current knowledge if accounting researchers do not refer the sa me. Since the concept of positive research theory has been very narrow, the study by Paul V Dunmore help in drawing a well-established base of learning for the readers. Though the benefits and constraints are briefed out in the article but the same is not clear from the perspective of the readers. The issues recognised in study affect the validness of research because this can hinder in considering the article for future research. The theoretical conclusion stated by Paul V Dunmore in the research analysis is feasible as it is held proper through evidence, justification and past studies. Thus, it can be seen that the report demonstrates a broader concept of a positive accounting research. Conclusion The current literature assessment showcase that in this article there is a wide difference between how the current positive research accounting is practised and what shall be needed for conducting the research. The study shows in clear terms that development of stringent theories is not an easy job. Most of the already existing theories are likely to fail when tested its authenticity. The current article is presumed to serve the policy makers with the base to enhance its theories by using data and working on developing the cons currently subsisting in positive accounting. The article presented is free from any encumbrances and stated in clear as well as concise manner. The research questions are answered in detail covering all the major valid points and also supported by authentic findings. Moreover the current article a key requisite is made for an extensive repetition to deliver an acceptable conclusion from the provided hypothesis testing. With this aspect there is a valid confirmation of the accuracy of measurement that is done in the article and the researcher can explore limitation of the research finding in the study. References Ardill, A.W., 2015. The Ideology and rhetoric of positive accounting theory. Chatfield, M. and Vangermeersch, R., 2014. The history of accounting (RLE accounting): an international encylopedia. Routledge. Choi, J.-H., Kim, J.-B., Liu, X., Simunic, D. A., 2009. Cross-listing audit fee premiums: Theory and evidence. The Accounting Review 84 (5), 14291463. Dunmore, V. P., 2009. Half a Defense of Positive Accounting Research. Massey University. Fogarty, T. J., Markarian, G., 2007. An empirical assessment of the rise and fall of accounting as an academic discipline.Issues in Accounting Education, 22 (2), 137161. Watts, R. and Zimmerman, J., 1986. Positive accounting theory. Prentice Hall. Watts, R.L. and Zimmerman, J.L., 2003. Positive accounting theory: A ten year perspective. Whitley, R.D., 1988. The possibility and utility of positive accounting theory. Accounting, organizations and Society, 13(6), pp.631-645. Wolk, I. H., Dodd, L. J. and Rozycki, J. J., 2012. 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