methodology of accounting theory development
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Accounting theory is that branch of accounting which consists of the systematic statement of principles and methodology. Prediction of accounting practices means that the theory can also predict unobserved accounting phenomena.
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Aᴄᴄᴏᴜɴᴛɪɴɢ ᴛʜᴇᴏʀʏ ᴍᴀʏ ᴀʟsᴏ ʙᴇ ᴜsᴇᴅ ᴛᴏ ᴇxᴘʟᴀɪɴ ᴇxɪsᴛɪɴɢ ᴘʀᴀᴄᴛɪᴄᴇs ᴛᴏ ᴏʙᴛᴀɪɴ ᴀ ʙᴇᴛᴛᴇʀ ᴜɴᴅᴇʀsᴛᴀɴᴅɪɴɢ ᴏғ ᴛʜᴇᴍ. Bᴜᴛ ᴛʜᴇ ᴍᴏsᴛ ɪᴍᴘᴏʀᴛᴀɴᴛ ɢᴏᴀʟ ᴏғ ᴀᴄᴄᴏᴜɴᴛɪɴɢ ᴛʜᴇᴏʀʏ sʜᴏᴜʟᴅ ʙᴇ ᴛᴏ ᴘʀᴏᴠɪᴅᴇ ᴀ ᴄᴏʜᴇʀᴇɴᴛ sᴇᴛ ᴏғ ʟᴏɢɪᴄᴀʟ ᴘʀɪɴᴄɪᴘʟᴇs ᴛʜᴀᴛ ғᴏʀᴍ ᴛʜᴇ ɢᴇɴᴇʀᴀʟ ғʀᴀᴍᴇ ᴏғ ʀᴇғᴇʀᴇɴᴄᴇ ғᴏʀ ᴛʜᴇ ᴇᴠᴀʟᴜᴀᴛɪᴏɴ ᴀɴᴅ ᴅᴇᴠᴇʟᴏᴘᴍᴇɴᴛ ᴏғ sᴏᴜɴᴅᴀᴄᴄᴏᴜɴᴛɪɴɢ ᴘʀᴀᴄᴛɪᴄᴇs.
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