Positive Accounting Theory: A Ten-Year Perspective

Positive Accounting Theory:
A Ten-Year Perspective

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
REVIEW OF LITERATURE..........................................................................................................3
OVERALL ANALYSIS..................................................................................................................4
RECOMMENDATION & CONCLUSION....................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The overall study report is concentrated on evaluating the article and journal that analysed
trends and current status of positive literature on the accounting. These chosen article “Watts and
Zimmerman” (1990), had provided analyses, critiques, including perspectives on positive
accounting principle, critical aspect of view evaluation of political as well as social declarations,
and identification of multiple accounting theory factors. This study presented a report on overall
discussion of positive accounting hypotheses and their analysis over a given timeframe. The
main discussion had outlined brief accounting principles review report as well as the evolution of
its factors. The overall study, supported by financial structures and concepts,
outlined development and analysis of overall positive accounting theory including income
determinants.
REVIEW OF LITERATURE
Literature analysis review is a brief overview of all article chosen for this specific project
study. The overview analysis concerning all the article selected is as follows:
The selected article review is focused on the evaluation of positive accounting methodology
critical analysis (Watts and Zimmerman, 1990). This also offered a recommendation as to the
nature of updated accounting practices and the value of the firm's contracting costs. This paper
had reviewed everything about identifying the progress in the creation of various accounting
framework, which calculated the defects in the organisation's accounting standards. this also
demonstrated the relations among accounting theories and empirical research via various
statistical analyses. The conceptual and researched aim in this study is to demonstrate the
specific needs to adjust accounting policies in order to clarify the various actions undertaken –
including the behaviours of the stakeholders – by corporation management. PAT literature
concentrates on overall financial reporting management objectives, the usage of economic
modelling and statistical analysis where agency expenditures and imbalance of knowledge exist.
It seeks to clarify and forecast company accounting preferences as parts of the broader need for
the company to reduce its capital expenditure and many other contractual expenses,
implementing economic strategies and tools (Avelé, 2014). In positive study, opportunistic
behaviours and actions of executives and their effect on accounting policies decisions were
widely studied, resulting in a diverse collection of analytical earnings management findings.