Accounting Theory Construction.docx

Hence a theory can be developed from observations of

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
accountants in order to copy their accounting procedures and principles. Hence, a theory can be developed from observations of how accountants act in certain situations. In contrast, psychological pragmatic approach requires theorists to observe users’ response to the accountants’ outputs such as financial reports. A reaction by the user is taken as evidence that the financial statements are useful and contain information relevant to the users. Syntactic and semantic theories Syntactic theories are based on a logical relationship, which has to do with the rules of the language used. This theory relates basic concepts at the abstract level and emphasis on the logical reasoning and not the empirical content of the statement in the real world. It refers to a flow of logic, not to the accuracy of an argument’s representation of the real world. Semantic theory in contrast relates basic concepts of a theory with the real world. Verification is based on the premises and conclusion, not 17 on the logical reasoning. Semantics is the study of meaning. It focuses on the relationship between signifiers such as words, phrases, signs and symbols. Thus, a semantic theory provides a framework to specify word meaning. Normative theories Normative theories are more concerned with what should be done, rather than with analyzing and explaining what currently accepted practice is. Normative theories developed in 1950s and 1960s,
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern