The accounting theory has undergone rapid changes and innovations in recent years. These changes are considered a new accounting theory. These innovations and new theories contradict traditional accounting theory. The difference is that the changing companies are counting their money. According to Ahmed (2000), "Accounting history is a study of the evolution of accounting thinking, practices, and institutions in response to the environment and social changes."
The Traditional Approaches
. " Older accounting style is reactive to past experience, which is why it is current. These are the methods that formed a large part of traditional theory.
Formulation of Accounting Theory as a Tool for International Harmonization of Accounting Standards "Non-theoretical approaches to accounting are a pragmatic (or practical) approach and an authoritarian approach." These approaches serve to identify known used to perform known tasks. The basis of this theory is the ideal that the accounting theory must be in the final use of the financial statements. This means that any other theory that does not conform to these attributes can be regarded as wrong.
The deductive approach is an attempt to find what "should". According to Porwal (2001), the four steps of applying the deductive approach:
• Determining the goals of the financial statements
• Selection of accounting "postulates"
• Conduct accounting "principles"
• Developing Accounting Techniques
An ethical approach is the one that contains the equality and transparency of the accounting framework above all. This means that accounting approaches can not be decided or tacitly assisted by a particular party, but should be prevented. This approach also focuses on equity, which claims that business is ethical and in good faith.
The sociological approach focuses on accounting sociological effects. This includes the general well-being of the general public; and the equality that accounting has to bring to the world. In order for this to work, it is essential that "consolidated social values" are used in the application of accounting theory
The economic approach to accounting theory differs from sociological and ethical approaches and economic prosperity. This means that choice is linked to the nation's overall goal of the economy. This is much less focused on individual equality of opportunity and especially macroeconomic factors.
New approaches to accounting have evolved and reconsidered in recent years and are indispensable for today's accounting. In the accounting world, all parties have not yet accepted the new theory. These five approaches are based on the new theory.
One of the main aspects of accounting theory is advisory clients. Accountants should be able to make their customers better choices in the future when they change their company. For example, according to LS Porwal Accounting Technique 3E, "A client who increases the revenue of his stock market price taking into account stockpiling and accounting changes must be informed that such tactics do not deceive the market." This shows the part that the accountants are playing to advise on the future steps that companies undertake to secure their money.
While generally excluded from traditional accounting processes, a behavioral approach is based on people's opinions and reactions. This report tries to quantify the reaction people get to financial statements users collectively.
Human Information Processing Approach
The Human Information Processing Approach is based on the processing, process, and output of the model inputs. These three tools allow accounting methods to be used in other general realistic problems
According to FASB's conceptual findings, predictive value is a key element of relevance, the primary quality of financial reporting. This approach means evaluating different options and choosing different choices
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