İzleyiciler

9 Mart 2011 Çarşamba

Positive Accounting



Positive accounting is the branch of academic research in accounting that seeks to explain and predict actual accounting practices. This contrasts with normative accounting, that seeks to derive and prescribe "optimal" accounting standards.

Positive accounting emerged with empirical studies that proliferated in accounting in the late 1960s. It was organized as an academic school of thought of discipline by the work of Ross Watts and Jerold Zimmerman (in 1978 and 1986) at the William E. Simon School of Business Administration at the University of Rochester, and by the founding of the Journal of Accounting and Economics in 1979. When published, the pioneering articles were greeted with considerable criticism.

Positive accounting can be associated with the contractual view of the firm. The firm is viewed as “a nexus of contracts” and accounting one tool to facilitate the formation and performance of contracts. Under this view, accounting practices evolve to mitigate contracting costs by establishing ex ante agreement among varying parties. For example, positive accounting postulates that conservatism in accounting –in this sense defined conditionally as requiring lower (higher) standards of verifiability to recognize losses (gains)– has origins in contract markets, including managerial compensation contracts and lender debt contracts. As an example, absent conservatism, managerial compensation agreements may reward managers based on current reports that later evidence indicate were unwarranted.

The contractual view of positive accounting puts it in tension with value relevance studies in accounting: the latter contend that accounting’s primary role is to value the firm, and thus practices like conservatism are sub-optimal. The value relevance school emphasizes the usefulness of accounting information to equity investors in contrast to its usefulness in contracting exercises.

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12 yorum:

  1. its amazing, there's so much stuff i will never get to know anything about, even if i spend my whole life looking.

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  2. @Art i like: Indeed, and yet we were made mockingly with a mind that is driven to keep learning :D

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  3. I didn't *need* that information but like having it so it all worked out in the end! I'm just glad we have accountants to figure all that stuff out...

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  4. thank you for this information :) +followed

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  5. I totally needed that info!

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  6. awesome, thanks for that info!

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  7. Of course I needed that ingo xD

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  8. This is actually something I was curious about just the other day, thanks for posting!

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  9. Totally need that info, what would I do without it?

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  10. The image remind me the Flinstones

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  11. Too much info in this world. Keep covering it man.
    How to Hack Life.

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