Question

Definition of approaches to formulations of accounting theory

Answer 1

If it is imaginable to develop an accounting theory (Hendriksen and McDonald) then how do we approach its development? Research in this area has centered on traditional approaches, regulatory approaches and what has come to be observed as new approaches. Following are the approaches

Traditional approaches

Traditional approaches cover:

Non-theoreticalTheoretical

Non-theoretical approaches to accounting theory are concerned with developing a theory or accounting methods and principles that will be beneficial to manipulators, mainly decision makers. This approach can be established in a practical or authoritarian way. In essence this is the approach the accounting occupation has used in the past to develop an accounting theory and it is honestly apparent it has not been able to resolve conflict in accounting practices or philosophies.

Theoretical approaches to the development of an accounting theory are many such as:

Deductive approach
Inductive approach
Ethical approach
Sociological approach
Economic approach
Eclectic approach

Please mark me as brainliest,Thank you and follow me.

Answer 2

Answer:

Here is required answer.

Explanation:

Accounting theory is a set of assumptions, frameworks, and methodologies used in the study and application of financial reporting principles. The study of accounting theory involves a review of both the historical foundations of accounting practices, as well as the way in which accounting practices are changed and added to the regulatory framework that governs financial statements and financial reporting.

New theories are formulated and existing ones are remodeled with the help of accounting theory.

In different time phases for explaining accounting practices different theories have been formulated. Some of these theories have been put to storehouse in subsequent period while some others have gained momentum. So, formulation of new theory and rejection of old theories are well-accepted features of accounting theory.

New theories are always formulated on the basis of new opinions or concepts. Such opinions or concepts are identified as approaches. So approaches to the formulation of accounting theory stand for the different opinions or concepts on the basis of which new accounting theories are invented.

FOR MORE INFO :

https://brainly.in/question/13284723

#SPJ6