Contemporary Accounting Theory

This article discusses the revolutionary contributions of Chamber's contemporary accounting theory, including asset valuation and measurement. It also provides a critical appreciation of Chamber's work and its relevance in the 21st century.

Running head: CONTEMPORARY ACCOUNTING THEORY
Contemporary accounting theory
Name of the Student:
Name of the University:
Author’s Note:

1CONTEMPORARY ACCOUNTING THEORY
Executive Summary
Well written books do have power for changing the whole world on the other hand excellence in
work becomes major part of day to day activities. Thomas Samuel Kuhn being the author for the
book written “The structure of scientific revolution “has brought about a huge change into the
philosophical look behind the science as well as introduced “paradigm” as phrase. The
conception of mankind on science was brought into change by Kuhn that was dominated through
ideas which got philosophical. The scientific path followed to solve the issues are well described
and explained by Kuhn. Kuhn’s ideas for paradigm had brought about with an intellectual
framework that has made possibility for research and also for quick processing.

2CONTEMPORARY ACCOUNTING THEORY
Table of Contents
Introduction.................................................................................................................................................3
Literature review:........................................................................................................................................3
Discussion of Chamber’s revolutionary contributions.................................................................................5
Critical appreciation of Chamber’s contribution:.........................................................................................7
Conclusion...................................................................................................................................................9
Reference..................................................................................................................................................11

3CONTEMPORARY ACCOUNTING THEORY
Introduction
Kuhn has represented revolutionary way out for having the knowledge about science,
about its functions as well as its progression. Scientific practice views by Kuhn are on the basis
of community other than on individuals. Science is considered to be sociological matter in the
community that involves certain norms as well as beliefs that are commonly held and those
functions and regulates as per it. Kuhn had further challenged for long-term scientific procedures
through “The structure of scientific revolution” by giving out idea for transformation that could
not arise due to day to day experiments done or by collection of data (Devlin & Bokulich, 2015).
Kuhn had given a breakthrough with his thoughts as well as ideas that takes place out of normal
science. It can be said that scientific education is a beginning for young research in form of
conventional pattern where there is a practice of science. So, Kuhn introduced the phrase of
“paradigm” that brought about with assumption of scientific community as well as for allowing
for further functioning (Kaiser, 2016). The paradigm has brought about to scientific revolution
that reveals that all ideas needs to get reintegrated into new concept as well as structures them
into newly introduced paradigm. Kuhn’ s revolution has been considerable to be marked as
turning point for philosophical science and for making knowledge objective as a human
knowledge relative field.
Literature review:
Thomas Kuhn represents revolutionary approach in order to show the progresses of
science (Bird, 2014). Kuhn considers science to be as a step towards progression in the form of
leaps from one to other paradigm. With respect to community in the world science is considered
to be sociological concept for having standard as well as common beliefs for helding and
regulating. There is an argument by Kuhn for it and also an example for the scientific education

4CONTEMPORARY ACCOUNTING THEORY
of young researcher’s to be in the conventional system where there is a practice of science. This
is the reason for which Kuhn is said to be as paradigm. The past of science is considered to be as
in progress from one to other paradigm has been explained well by Kuhn. Single paradigm being
sufficient for the world is recognized to be as normal science for presentation of knowledge in
paradigm. At the time of crisis of paradigm which is not enough for one in that case there cannot
be any kind of account for appearance of contradiction and after that new paradigm search had
been started (San Jose, 2014). As per Kuhn crisis with respect to paradigm brought about
revolution that marked with a shift in break from the paradigm which got existed.
This impacted into the situation where previous knowledge got to be again integrated into
newly built concept as well as paradigm structure. Kuhn in his book tried his best to explain that
paradigm has its own importance in terms of mature scientific community which can be solved
with the help of facility which are comparable. The scientists used the rules for sharing paradigm
which are solved with an ease (Euler, 2014). The main reason is scientists can face failure for
agreeing on explanation of paradigm. Paradigm has existence does not say that there are any
complete set of rules for that. Paradigm if shares the credit are not always considered to be
evident. Without the involvement of rules which are discovered normal science determines
paradigms. This happens all because of discovery difficulty and complications for introducing
rules that help further in guiding science tradition. Laws as well as theories concept involved in
abstract not at all learned by scientists but are learned by them with the applications.
Sub-specialties are uniquely informed and specially focuses on complex applications for
the findings of research. Paradigm theory can make decision of all traditions related to normal
science that gets overlapped not being coextensive (Khorasani & Almasifard, 2017). In the same
way paradigm changes can impact different sub specialties very uniquely. Revolution that gets

5CONTEMPORARY ACCOUNTING THEORY
generated in any of these traditions will not compulsorily cause extension to others (Moravcsik,
2014). Scientific revolt is known to be non-cumulative in terms of development episode in which
aged as well as paradigm which is old in the whole or either in part with confliction of new one.
Revolution that is political starts with increase by the members of community of the institution
which is existing. The objective of insurrection which is political is for change in the political
institution in the methods that those institutions are themselves forbidded. Revolution parties
dispute resort for the techniques of coercion of mass. As per Kuhn it is not so easy for science for
being settled into one single paradigm where the others cannot (Ferguson, 2018). The main
reason for this is that there is a rare chance for simple experiment to fail and for another to pass
on. Many other experiments are there that one does for better on some case and another
paradigm creates better for others. Secondly, two of the paradigms does not address for matching
of questions. Last, two of the paradigms does not agree to the point of kind of solutions which
are permitted or what brings about solving of issues. Kuhn’s scientific revolutions appraises for
the mark of postmodern which turns into philosophy of science for making ideas of human with
respect to the field in case of belief as much of knowledge of objective.
Discussion of Chamber’s revolutionary contributions:
Cocoa approach has been developed by Chamber where the details has been explained as
a difference for measurement as well as valuation. Chamber explains in detail about
measurement as the function for accounting in which accountant do make relation with respect to
facts and communicates to the users for accounts (Barth, 2015). He also explains in details about
valuation that is related to expectations for benefits in future with the help of future generation of
assets. He further explains about the asset that is measurable in equal through two different

6CONTEMPORARY ACCOUNTING THEORY
accountants. Measurement should have an idea for being objective and should be considerable
for being independent from result of the accountants or any of the users.
Chamber made criticism of conventional being a practice of accounting that is dependent
on two different issues (Gaffikin, 2014)). Values of points during the period of time came out for
being under observation. Particular rules of accounting and regulations are prescribed including
measurement of assets at each accounting period on cost basis of allocation and other than
calculations are based on observations of real kind in nature. Chamber also contributed towards
with his argument included in case that accounting should use either factual or observed based
values and such scale of values can be observed should be of prices and should be based on
market value(Whittington, 2014). Secondly, in case of purchasing power change can be brought
for monetary units not being considered for present accounting rules as well as regulations. In
this case he contributed and brought about changes in terms of measuring distance between two
points where points should have measurement in same unit. If not then specific adjustment in
initial state should be made for obtaining common unit for terminal state.
Chamber also contributed towards changes in the form of argument for truthfulness in
terms of fair changes for financial position that can be derived as well as obtained for prices in
the market and also changes for general price levels can be shown in the financial statements and
also in calculation of net income (Palea, 2014). Chamber could conclude that economic action
can be brought as a periodical accounting based on present cash equivalents for assets from
proper time to time basis as well as income in periods and also calculations in real as well as
authenticity of financial statements that can be taken through observations of price on timely
basis. Chamber brought about develop0ment into alternate system for contemporary accounting
by moving away from conventional accounting theory.

7CONTEMPORARY ACCOUNTING THEORY
He further made contribution towards alternative theory in: He says that assets can either
be in terms of money or its equivalent valuation (Barker & Schulte, 2017). Again he said non-
monetary assets values can bring about specific changes for particular value of assets. He could
find out that contemporary values can show or reveal specific changes for asset valuation
purpose and for this only specific measures for value is irrelevantly considerable. Again, change
with money purchasing power is considerable for impact of financial position and also for
operation result terms. Chamber further says entry prices is relevant in selection of new assets
and these are not capable enough for having adaptive ability. Further he explains with his
contribution as an argument that capability which is adaptive should be changed in case of being
reflected for financial statements than use of realizable value. He also considered historical cost
to be significant in case of transactions at early stage. Discounted values are used as an
appropriate method for choice in case of projections of profits in various alternatives.
Critical appreciation of Chamber’s contribution:
Chamber in 21st century has been considered very famous for his accounting theory
(Zimmerman, 2015)). Majority of accountants are considering demands for involving of present
values in case of accounting. Chamber can be well recognized for his research work being
evident for 19th century for specific practices of accounting. This further reveals about current
market prices utilization being considerable as acceptance in case of business practices at early
stage. Chamber is very famous for exploration of his concepts in revolutionary accounting theory
that is helpful to understand and gain knowledge for development of cost accounting concepts
and ideas. Chamber could show cost valuation originality for accounting in product for particular
developments in legal, tax laws and traditional corporate in recent situation. He is famous for

8CONTEMPORARY ACCOUNTING THEORY
description of cost accounting theory for traditional accounting theory in 21st century that
involved traditional methods for accounting theory related to amount of current valuation.
Argument can be made for importance of study of CoCoA which cannot be still
disapproved as limited consideration and acceptance is there. The theory is well considerable for
development for time basis and for serving of real time needs as well as requirement in order to
make decisions for values that brings about continuation of support and is helpful for well
understanding for acceptance of people (Gupta, Pouw & Ros-Tonen, 2015). In 21st century it is
said that failure for achievement of official endorsement for CoCoA in Chamber’s revolutionary
contribution at very 21st century is well discussed into 3 dimensions: nature, times and
misconception. At first in 21st century Chamber’s theory is considered for being revolutionary
concept and further brought about requirement for support in practice of dominance approach but
with regulators. For establishment of CoCoA Chamber found to have acceptance as well as
consideration for normative and positive concept theory at 19th century for discipline being
reluctant in getting on change in time and for establishment approach.
Secondly, 21st century got considerable for Chamber’s revolutionary concept for CocoA
in literature in year 1960s in terms of concept of market accounting in research and invention
(Jones 7 Wells, 2015)). It is also said in 21st century that majority could not understand the
concept of CoCoA for being Chamber’s revolutionary concept and it is considerable that
inflation accounting can be treated as an alternative for being believed that inflation can move
for need of CoCoA can give rise to requirements (Chambers, 2014). Chamber could not consider
accounting theory to be solution for the issue of inflation in future at 21st century and was
considerable for being as comprehensive system of accounting and was also considerable for
inflation as deficiency in case of CoCoA would easily get recovered(Edwards, 2014). 21st

9CONTEMPORARY ACCOUNTING THEORY
century considered people with his arguments for CoCoA to be superior with respect to
alternative accounting concepts and theories. Chamber’s work could be paid attention for and for
the need of continuous improvement in advanced technology and it also got about importance for
data and will be available globally(E. Persson, 2014).
It can also be found that in 21st century Chamber’s theory can be recognized for asset
valuation in market values and is acceptable for intellectual assets for not being considered as
assets until and unless market values can be established (Jones & Wells, 2015). In 21st century
CoCoA can be considered for being developed and intellectual capital to be very important and
significant in 21st century and will be helpful in overcoming objections as well as obligations.
Conclusion
From the above discussion conclusion can be made that revolutionary theory of concepts
for accounting has brought about its establishment in the 19th century. Further there has been
explanation in the above discussion that the way Chamber’s revolutionary concept of positive
and normative accounting theory got establishment and got replaced in alternative accounting
concepts and also for its theories. Further conclusion can be made that chamber’s cost
accounting theory is replaced by traditional methods as well as concepts for accounting. Above
discussion makes very clear that Chamber’s revolutionary concepts of accounting would
overcome the failure with respect to traditional concepts with the help of CoCoA and raised to
specific basic principles as well as brought about measures for reporting and also gave about true
as well as fair picture for financial results in terms of financial statements with his contribution
towards revolutionary concepts. Discussion further reveals about with the brief idea of the way
Chamber’s contribution of accounting theory got acceptance and recognized by people at 21st
century. It can also be found that contribution by Chamber could not be similar to the concept of

10CONTEMPORARY ACCOUNTING THEORY
“Structure of scientific revolutions”. However, it is well observed that contribution by Chamber
in revolutionary concepts of accounting brought about gave rise to some specific arguments and
also with suggestions that brought about development in accounting theory and for also financial
reporting. The above discussion could well reflect henceforth that Kuhn’s theory of accounting
concepts was quite traditional and proved to be impracticable for financial reporting with respect
to Chamber’s newly revolutionary concepts of accounting which brought about specific changes
in accounting concepts for 21st century and can be applicable for future period of time.

11CONTEMPORARY ACCOUNTING THEORY
Reference
Barker, R., & Schulte, S. (2017). Representing the market perspective: Fair value measurement
for non-financial assets. Accounting, Organizations and Society, 56, 55-67.
Barth, M. E. (2015). Financial accounting research, practice, and financial accountability.
Abacus, 51(4), 499-510.
Bird, A. (2014). Thomas kuhn. Routledge.
Chambers, R. L. (Ed.). (2014). An accounting thesaurus: 500 years of accounting. Elsevier.
Devlin, W. J., & Bokulich, A. (Eds.). (2015). Kuhn’s Structure of Scientific Revolutions-50 years
on (Vol. 311). Springer.
E. Persson, M., & J. Napier, C. (2014). The Australian accounting academic in the 1950s: RJ
Chambers and networks of accounting research. Meditari Accountancy Research, 22(1),
54-76.
Edwards, J. R. (Ed.). (2014). Twentieth Century Accounting Thinkers (RLE Accounting).
Routledge.
Euler, D. (2014). Design Research-a paradigm under development.

12CONTEMPORARY ACCOUNTING THEORY
Ferguson, M. A. (2018). Building theory in public relations: Interorganizational relationships as
a public relations paradigm. Journal of Public Relations Research, 30(4), 164-178.
Gaffikin, M. J. (2014). Accounting Methodology and the Work of RJ Chambers (RLE
Accounting). Routledge.
Gupta, J., Pouw, N. R., & Ros-Tonen, M. A. (2015). Towards an elaborated theory of inclusive
development. The European Journal of Development Research, 27(4), 541-559.
Jones, S., & Wells, M. (2015). Accounting Research: Where Now?. Abacus, 51(4), 572-586.
Kaiser, D. (2016). Thomas Kuhn and the psychology of scientific revolutions. Kuhn’s Structure
of Scientific Revolutions at Fifty: Reflections on a Science Classic, 71-95.
Khorasani, S. T., & Almasifard, M. (2017). Evolution of management theory within 20 century:
A systemic overview of paradigm shifts in management. International Review of
Management and Marketing, 7(3), 134-137.
Moravcsik, A. (2014). Transparency: The revolution in qualitative research. PS: Political
Science & Politics, 47(1), 48-53.
Palea, V. (2014). Fair value accounting and its usefulness to financial statement users. Journal of
Financial Reporting and Accounting, 12(2), 102-116.

13CONTEMPORARY ACCOUNTING THEORY
San Jose Montano, B. (2014). The new paradigm of collection management in university
libraries: from crisis to revolution. Collection Building, 33(3), 90-97.
Whittington, G. (2014). 14 The LSE Triumvirate and its contribution to price change accounting.
Twentieth Century Accounting Thinkers (RLE Accounting), 252.
Zimmerman, J. L. (2015). The role of accounting in the 21st century firm. Available at SSRN
2544697.