Positive Accounting Theory: Theoretical Perspectives on Accounting Policy Choice

Nasution, Shabrina Tri Asti; Putri, Rizqy Fadhlina; Muda, Iskandar; Ginting, Sentosa

doi:10.5220/0009506011281133

Cited by 12 publications

(15 citation statements)

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“…According to Nasution et al (2020), positive accounting theory posits that the primary objective of accounting theory is to elucidate and forecast accounting practices. It endeavors to elucidate processes by utilizing accounting expertise, comprehension, and knowledge, alongside the application of accounting policies deemed most appropriate for addressing specific future conditions.…”

Section: Positive Accounting Theorymentioning

confidence: 99%

The Effect of Audit Tenure and Audit Rotation on Audit Quality in Consumer Goods Companies listed on the IDX for the Period 2020-2022

Hadji

2024

International Journal of The Newest Finance and Accounting

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The aim of this research was to investigate the impact of Audit Tenure and Audit Rotation on Audit Quality in Consumer Goods Companies listed on the IDX for the period spanning from 2020 to 2022. The study population consisted of 41 consumer goods companies listed on the Indonesia Stock Exchange during the specified timeframe. Data collection was conducted using purposive sampling. The analytical approach employed in this study involved multiple regression analysis with the assistance of the Eviews 8 software. Based on the test outcomes, it is deduced that audit tenure does not influence audit quality in consumer goods companies listed on the IDX for the period 2020-2022. Similarly, partial findings indicate that audit rotation does not have an impact on audit quality in consumer goods companies listed on the IDX for the same period. However, when considering both audit tenure and audit rotation simultaneously, they collectively affect audit quality in consumer goods companies listed on the IDX for the period 2020-2022.

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Section: Positive Accounting Theorymentioning

confidence: 99%

The Effect of Audit Tenure and Audit Rotation on Audit Quality in Consumer Goods Companies listed on the IDX for the Period 2020-2022

Hadji

2024

International Journal of The Newest Finance and Accounting

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“…Positive accounting theory is based on the assumption that individuals, including managers, investors and other parties, act rationally and seek to maximize their utility or personal interests (Nasution et al, 2020). This theory also focuses on empirical testing and validation of prescriptive accounting models before being adopted as accounting standards.…”

Section: Political Cost Hypothesismentioning

confidence: 99%

Application of positive accounting theory in capital market research & market response to accounting disclosures

Ananta,

Telaumbanua,

Siregar

et al. 2023

Braz. J. Develop.

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This research examines Positive Accounting Theory and its relationship with the capital market. This theory is based on three hypotheses that underlie managerial accounting theory. Using a qualitative descriptive approach, this research presents an overview of the application of Positive Accounting Theory and capital market research methods. Markets are explained through economic models that include decision trees, supply and demand, and game theory, with external factors such as competitors, consumer behavior, and political and monetary policy influencing the market. In the corporate context, the application of Positive Accounting Theory varies according to the characteristics and internal conditions of the company. However, the use of positive accounting can have a significant positive impact on company sustainability as revealed in the results of previous research. Positive Accounting Theory describes social phenomena as the result of individual decision making based on rational behavior to maximize utility, especially in the context of capital markets.

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“…In other words, Positive Accounting Theory (PAT) is intended to explain and predict the consequences that occur if managers make certain choices. At present, positive theory emphasizes on explaining the reasons for current practices and predicting the role of accounting and related information in the economic satisfaction of individuals, companies, and others who play a role in capital market and economic activities (Nasution et al, 2020). However, the assumptions underlying the positive Brazilian Journal of Development, Curitiba, v.9, n.12, p. 31784-31799, dec., 2023 research project have been criticized because proponents of positive theory use alternative rejections, aka other thinking.…”

Section: Positive Accounting Theory (Pat)mentioning

confidence: 99%

Approaches and critiques of Positive Accounting Theory (PAT) and Normative Accounting Theory (NAT) : a literature review

Utari,

Manalu,

Lubis

et al. 2023

Braz. J. Develop.

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Positive Accounting Theory (PAT) is an accounting theory that aims to explain and predict accounting practices carried out by companies. This theory emerged as an alternative to the normative approach which emphasizes more on what accountants should do in presenting financial information. However, PAT also received criticism related to the assumptions used in this theory. Therefore, this paper aims to review how the approach and criticism of PAT. The method used in this research is Systematic Literature Review (SLR) which is conducted by identifying, assessing, and interpreting all available research evidence regarding approaches and criticisms of PAT. The sources used in this paper are articles, books, and journals related to Positive Accounting Theory (PAT) and the criticisms raised against it. The results show that PAT has developed into a science that can be used to explain the choice of methods to be used by managers and other constituents of financial statements that can be used for decision making. However, PAT has also been criticized including issues related to research methods, methodology, and the basic assumptions underlying the theory. In conclusion, Positive Accounting Theory (PAT) has had a significant impact on accounting practice, but keep in mind that this theory also has limitations and has been criticized by some parties. This paper provides an in-depth insight into the approaches and criticisms of Positive Accounting Theory (PAT), as well as highlighting the importance of critical evaluation of accounting theory in the development of accounting science as a whole.

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Positive Accounting Theory: Theoretical Perspectives on Accounting Policy Choice

Cited by 12 publications

References 0 publications

The Effect of Audit Tenure and Audit Rotation on Audit Quality in Consumer Goods Companies listed on the IDX for the Period 2020-2022

The Effect of Audit Tenure and Audit Rotation on Audit Quality in Consumer Goods Companies listed on the IDX for the Period 2020-2022

Application of positive accounting theory in capital market research & market response to accounting disclosures

Approaches and critiques of Positive Accounting Theory (PAT) and Normative Accounting Theory (NAT) : a literature review

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