Half Defence of Positive Accounting Research

Question: Discuss about the Half Defence of Positive Accounting Research. Answer: Introduction The research article Half a Defence of Positive Accounting Research has elaborated on the effectiveness of positive accounting theory in the field of accounting. The main aim of the research article is to examine the ontology and epistemology of the positive accounting theory. The main argument presented by the author in the resrch paper is that positive accounting theory has many weaknesses and emphasises on the importance of incorporating the use of other theoretical models in accounting. In this context, the present paper has undertaken a critical analysis of the research article through summarising its main concepts, identifying the research questions, providing a discussion of its theoretical framework and examining its significance and limitations. Summary of the Article The main argument presented by the author in the research article is the incapability of positive accounting theory in achieving the scientific objectives of accounting. The field of accounting largely incorporates the use of positive accounting theory that influences the human behaviour on decision involving the use of accounting concepts and practices. The theoretical argument in the overall article is about analysing the deficiencies in positive accounting theoretical model that prevents it from making a meaningful contribution in the field of accounting. The effectiveness of positive accounting theory is evaluated in the article with the application of qualitative and quantitative resrch method. Qualitative research method involves collecting theoretical facts in context of the research topic. However, quantitative analysis involves the implementation of statistical testing of hypothesis developed in the research article. It has been inferred from the overall research that there is need of better theoretical models in accounting as positive accounting is not largely capable of for achieving the scientific objectives of accounting. Positive accounting research has made large contribution in developing an understanding of the human behaviour. However, the outcomes achieved through the theory do not adequately meet the needs of operating a research program successfully (Dunmore, 2009). Research Question The main research question addressed in the present study is How positive accounting research is actually practiced and what is required for enhancing its contribution in the broader scientific research projects? The research question has been derived from the theoretical research carried out in the literature review section. The literature review in the article has highlighted about the importance of positive accounting research for understanding the cause and effect relationships across the world. It has provided an in-depth understanding about both the importance and deficiencies of positive accounting research. Theoretical Framework The theoretical framework of the research article has highlighted the significance of implementing the use of positive approach to accounting research. The concept of positive accounting is used by accountant worldwide to take critical decisions about the accounting practices prevalent in an organisation. The theoretical framework has defined positive accounting as a branch of academic accounting research that provides a solid foundation for explaining and predicting the accounting practices. The theory states that business organisations tend to adopt the accounting practices that enhance their financial performance. Thus, positive accounting theory as such forms the value judgement of accountant about the type of accounting practice to be implemented for representing the financial position of a firm (Rhonheimer, 2000). However, the theoretical framework also emphasises on deficiencies present in the positive accounting research that prevents it from attaining the objectives of the r esearch project. The main limitation of the accounting theory is that it does not provide any means of improving the accounting practices. The theory mainly consider the accounting choices at an individual level however business organisations have wide number of choices regarding the accounting practice to be used. The accounting practice that is selected by the accountants by considering the positive accounting theory can have negative effect on the financial performance of a firm (Dunmore, 2009). Positive accounting research is a societal theory and as can influence the human behaviour that may not be beneficial for an organisation growth and development (Deegan, 2014). Thus, the accounting practices should be implemented on the basis of financial condition without considering the rational human behaviour. The accounting researches should aim to develop an understanding of particular accounting practices and should not empathises on the rational behaviour of human psychology while implementing accounting practices. The accountants would develop accounting policies that benefits the overall financial performance of a firm even if the practices violate the rational behaviour in human psychology (Chatfield and Vangermeersch, 2014). The Significance and Limitations of the Article The main limitation of the research article is that it does not properly implement the primary research method. The research does not incorporate the collection of any primary data that and as such lacks practical demonstration to develop a specific answer for the research problem. The article mainly involves the use of secondary literary sources and as such is mainly qualitative in nature (Dunmore, 2009). The theoretical framework used by the author is very vast and should be narrowed down in order to provide a basic answer for the research question. Author has used exploratory research design that is mainly involved the collection of both primary and secondary data to explore the research topic properly. However, the theoretical conclusion drawn by the author is mainly based on the literature review and is not supported from practical demonstration. Thus, the research study lacks objectivity and is mainly subjective in nature. Thus, the limitations have negatively impacted the sign ificance of the research article for further studies in this context. The findings demonstrated by the author thorough the research article needs to be tested practically in future for making valid conclusion (Dunmore, 2009). Conclusion The main point inferred from the research article us that current practice of accounting research does not adequately meet the standards required for carrying a research program successfully. Thus, as such there is high need for developing better theoretical models for conducting accounting research. References Chatfield, M. and Vangermeersch, R. 2014. The History of Accounting (RLE Accounting): An International Encylopedia. Routledge. Deegan, C. 2014. Financial Accounting Theory. McGraw-Hill Education Australia. Deegan, C. 2014. Financial Accounting Theory. McGraw-Hill Education Australia. Dunmore, P.V. 2009. Half a Defence of Positive Accounting Research. Rhonheimer, M. 2000. Natural Law and Practical Reason: A Thomist View of Moral Autonomy. Fordham Univ Press.