Question

Mention the Non-Theoretical (Informal) approaches to the formulation of accounting theory.

Answer 1

Explanation:

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:

1.Non-theoretical

Theoretical

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

I*nductive approach

*Ethical approach

*Sociological approach

*Economic approach

*Eclectic approach