ACCT20074: Report on Contemporary Accounting Theory: Kuhn & Chambers

This report delves into the core concepts of contemporary accounting theory, focusing on the contributions of Thomas Kuhn and Ray J. Chambers. It begins with an executive summary and an introduction to Kuhn's revolutionary ideas on scientific progress, particularly his concept of paradigms and scientific revolutions, and how these apply to the field of accounting. The report then provides a literature review examining Kuhn's theory and its implications for understanding the evolution of accounting practices. Subsequently, it discusses Chambers' contributions, including his CoCoA approach, which emphasizes the distinction between measurement and valuation, and critiques conventional accounting practices. The report further analyzes Chambers' contributions by discussing his arguments for using observable market values and adjusting for changes in purchasing power, highlighting his alternative system and its departures from conventional accounting theory. A critical appreciation of Chambers' contributions is provided, acknowledging his influence and recognition in accounting theory. The conclusion summarizes the key findings and the relevance of Kuhn and Chamber's work in accounting.

Running head: CONTEMPORARY ACCOUNTING THEORY
Contemporary Accounting Theory
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Executive summary
Good books have the power to change the world but a good work becomes the part of our
daily activities. Thomas Samuel Kuhn the author of “The structure of scientific revolution
“who changed the look of the philosophy behind science and also introduced the phrase
“paradigm”. Kuhn changed the concept of mankind on science which is dominated by
philosophical ideas. Kuhn describes the scientific way to solve problems. His big ideas of
paradigm created an intellectual framework that makes research possible as well as quick
processing.

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Table of Contents
Executive summary....................................................................................................................1
Introduction................................................................................................................................2
Literature review:.......................................................................................................................2
Discussion of Chamber’s revolutionary contributions:..............................................................4
Critical appreciation of Chamber’s contribution:......................................................................6
Conclusion..................................................................................................................................8
Reference:..................................................................................................................................9

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Introduction
Kuhn presents a revolutionary way to know the science, its function and progress.
His views of scientific practice are not based on a set of individuals, rather it based on
community. In a community, sociological matter is considered as science, which have some
common held beliefs and norms which regulates and function within it. Kuhn challenged the
long standing scientific process with the help of “The structure of scientific revolution” by
giving the transformative idea that from day to day do not arise experiments and data
collection. He gave a break through by his thinking and ideas that occur outside normal
science. Scientific education is an introduction to the young research in which science is
practiced in a conventional manner. So Kuhn introduced paradigm which is a basic
assumption for the scientific community and allow it to function (Marcum 2015). The
paradigmatic leads to a scientific revolution, which means studies has to reintegrate into the
structures and concept them into a new paradigm. Kuhn’s revolution is considered to mark as
a turning point in the philosophy of science and making the objective studies a relative filed
of human knowledge (Agassi 2014).
Literature review:
Thomas Kuhn tries to present a revolutionary approach to show how the science
progresses. Kuhn tries to view as a science progression between a leaps from one paradigm to
others paradigm. In case of world, the commodity, in terms of science is a sociological matter
of having standard and common beliefs that held within it and regulate it. Kuhn argues for it
and set an example that the young researcher’s scientific education is in to the conventional
manner in which science is practiced. This the reason why Kuhn is known as the paradigm.
Kuhn illustrates the past of science as a progression from one paradigm to the others
paradigm. When one of the paradigm is enough then for the world it is recognize as normal

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science and presenting studies within the paradigm. When paradigm is in disaster it is not
enough in one then it cannot account for appearing at inside contradiction, then search for
new paradigm gets started. Finally the Kuhn what happens is that the paradigmatic disaster
leads to the revolution which marks a shift even break from the existing paradigm. This
results in that all the previous studies has to be integrated again the new concept and structure
of a paradigm. .In the book Kuhn try to explain that the priority of paradigms of a mature
scientific community can be resolved with a comparable facility. Scientists are used a rule
who share by paradigm are not so easily resolved. The reason behind this is that the scientists
may fail to agree on the explained of a paradigm. The very existent of this paradigm does not
implicit that any complete set of rules is there. The credit shared by a paradigm are not
always willingly evident. The ordinary science without the involvement of discoverable rules
or shared supposition can be determine by Paradigms. This is due to the difficulty in
discovering the rules that guide a particular normal science tradition. The concept of laws and
the theories that is in the abstract is not learned by the scientists they learn this through their
applications. Sub-specialties are differently well informed and focus on difficult applications
for their research findings. The theory of paradigm can decide several traditions of normal
science that overlap without being coextensive. Similarly changes in the paradigm can affect
different sub specialties differently. “A revolution generated within one of these traditions
will not necessarily extend to others as well”. The scientific revolt is a non-cumulative
developmental episode where an aged and old paradigm in entire or in part by a conflicting
new one. Political revolution begin with an increasing sense by members of the community
of that existing institution. The aim of political insurrection is to change the political
institution in ways that those institutions themselves forbid. Parties to a revolution dispute
finally resort to the techniques of mass coercion. According to Kuhn it is not so simple for
science to settle on a single paradigm where the others cannot. The reason behind this is that

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there is rarely a simple experiment that one fails and another passes. There are many
experiments one does better on some and the other paradigm does better on others. Secondly
two paradigms may not even address or care about the matching questions. Lastly two
paradigms may disagree on what kind of answers are permitted or what counts resolving a
problem. The Structure of Kuhn scientific revolutions is appraise to be the mark of
postmodern turn in the philosophy of science, creating the studies of human in the relative
field of trust as much as it is of objective studies. It can be found in the above that Chamber’s
contribution contrasted with “Structure of Scientific Revolutions”(Mendie and EJESI 2014).
Discussion of Chamber’s revolutionary contributions:
Chamber developed CoCoA approach where he explained the difference between
measurement and valuation. He explains that measurement being the function in respect to
accounting where accountant make relation to facts and then communicates it to the users of
accounts. On the other hand he explains valuation is all about expectations with respect to
benefits over future through future generation of assets. He then explains that particular asset
can be measured well and in equal with the help of two different accountants. Measurement
should know to be objective and it should be considered as independent from impact of any
accountants or of any users (Gossin 2017).
Chamber further criticized about conventional an accounting practice which is
dependent on a two issues: Values at specific at the points of time period came out other than
being observed. Specific accounting rules as well as regulations prescribed showing the
measurement of assets at end of accounting period on the basis of allocation of cost and more
than calculations being based on real kind of observation as well as actual made discoveries
on the true as well as fair values of specific assets. Chamber further contributed with
argument that accounting should make use of either accurate or observable values and scale

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of values that can be observable are of prices on basis of market value. Secondly, changing in
case of power of purchasing in terms of monetary units were not under consideration as per
present accounting rules and regulations. He in this case made the contribution and changes
by measuring distance in two points where both the points should have same unit of
measurement. In case not then there should be certain adjustment related to initial state in
order to obtain common unit of state of the terminal. He explains the valuation is all about
expectations with respect to benefits over future through future generation of assets.
Chamber brought into contribution through changes by the argument of true as well as
fair changes in terms of financial position which is to be derived and obtained on the other
hand being prices of the market and changes in terms of general levels in price should be
shown in the financial statements as well as calculation in terms of net income. Chamber then
reached with the conclusion that economic action will be derived of as a periodical
accounting which will be based on present cash equivalents in case of assets from time to
time and income in periodical terms and calculations in real terms and also the authentic
financial statements which can be established through price observations from time to time
basis. Chamber had developed alternative system in terms of contemporary accounting by
departing from conventional accounting theory (Sanbonmatsu and Sanbonmatsu 2017).
He made contribution in an alternative theory by: First, he says assets can be stated in
terms of either monetary or money and its equivalent values. Secondly, he says value in terms
of non-monetary assets should bring about certain changes in terms of specific value of the
assets. H finds that contemporary values are there to show certain changes in terms of asset
valuation and due to this certain measures in terms of value can be considered to be
irrelevant. Thirdly, changes in terms of money’s purchasing power should be considered for
any kind of resulting in financial position as well as in terms of operations results. As per
Chamber entry prices being relevant for selecting new assets cannot have capability to show

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adaptive ability (Stove 2017). He further contributes with the argument that adaptive
capability needs to be changed for being reflected in terms of financial statements other than
using net realizable value. He considered historical cost to be important as well as relevant
for transactions at initial stage. Discounted values can be used as a method for make choice
from projections in terms of profits in case of several alternatives (Gattei 2016).
Critical appreciation of Chamber’s contribution:
Chamber has been recognized in the 21st century for contributions to his accounting
theory. Most of the accountants consider demands for including present values as accounting.
Chamber has been well known for his research as an evidence for 19th century in case of
certain accounting practices (Sanbonmatsu and Sanbonmatsu 2017). And in case of certain
references. This shows that utilization of current market prices has been considered as
acceptable for practices of business in earlier. Chamber has been recognized in this case for
exploring his concepts of revolutionary accounting theory that helps to well understand the
development in case of cost based accounting concepts. Chamber showed the originality of
cost based valuation in case of accounting as product of specific developments with respect to
legal, certain tax laws as well as for traditions of corporate in present situation. He is well
known in the 21st century for well describing about cost based accounting theory with respect
to traditional accounting theory that only included traditional methods of accounting theory
that included accounting of current value (Fernández and Buchroithner 2014).
It can be argued in the study that importance of CoCoA cannot be disapproved as only
because of very limited consideration and acceptance. The theory has been considered to get
developed over the period of time and it has been serving with the real needs and
requirements as well as to take decisions based on its values that has led to continue for
further support as well as for experimentation purpose and has helped for better

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understanding and has been well accepted by people (Orman 2016).In the 21st century it has
been said that failure in case of achievement of official endorsement in case of CoCoA of
Chamber’s revolutionary contribution of 19th century can be explained as well as understood
for 3 dimensions and parts: these are nature, times as well as misconception. Firstly 21st
century considered Chamber’s theory to be revolutionary concept in nature and it made a
requirement or need for supporting not so easily with dominant practice approach but with
help of regulators. In order to establish CoCoA Chamber has been found to get acceptance
and consideration for its normative and positive theory concepts in 19th century in case of the
mentioned discipline as a reluctance for getting change over time and an established approach
(De Oliveira Mendonça and Reis 2017). In respect to accounting he explains that
measurement being the functions, where accountant make relation to communicate and then
facts it to the users of accounts.
Secondly, 21st century has considered Chamber’s revolutionary concepts in which
CoCoA has been considered in terms of literature for the year 1960s as in the concept of
market based accounting of research and invention. It can be said in the 21st century that
majority misunderstood the concept of CoCoA of Chamber’s revolutionary theory and it was
considered to be one of the inflation accounting as an alternative and it was believed that if
inflation gets moved the need for CoCoA would rise as per requirements (Richards and
Daston 2016). It was Chamber who did not consider as his accounting theory and concepts to
be only solution for inflation issue in future period of time but in 21st century it was
considered to be a comprehensive system of accounting and it was considered that inflation to
be as deficiency that CoCoA could recover easily (Tsou 2015). In the 21st century it can be
considered by people that his arguments in terms of CoCoA are very superior to the other
alternative accounting concepts as well as other theories. His work is paid attention for and
has further need to get continued for improvement in terms of advanced technology and it

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will get relevance in respect to data that can be made available in global (Bird 2014). He
further contributes with the argument that adaptive capability needs to be changed for being
reflected in terms of financial statements other than using net realizable value.
On the other hand it can be found that in 21st century Chamber theory has been
recognized for the value of its assets in case of market values and it can be accepted as
intellectual assets are not considered as assets until and unless market values are established.
For 21st century CoCoa has been considered to be much developed and intellectual capital has
been very important as well as significant for 21st century and hence can be helpful for
overcoming the objections and obligations (Bainbridge 2014).
Conclusion
It can be concluded that Chamber’s theory of revolutionary concepts in terms of
accounting has been established in the 19th century. It further explained in the above
discussion that how Chamber’s revolutionary concept in terms of positive and normative
accounting theory has been established and replacing the alternative accounting concepts as
well as theories. It can be further concluded that Chamber’s cost based accounting theory has
replaced well over traditional methods and concepts of accounting. From the above
discussion it becomes quite clear that Chamber’s revolutionary concepts of accounting could
overcome the failure related to traditional concepts through CoCoA and it gave rise to certain
basic principles and measures in terms of reporting and also gave a true and fair picture of
financial results in financial statements through his contribution to revolutionary concepts.
The discussion also gives a brief review about how contribution of Chamber’s accounting
theory was accepted and well recognized by people in the 21st century (Omodeo 2016).It can
be found in the above that Chamber’s contribution contrasted with “Structure of Scientific
Revolutions”. It can be well observed that how Chamber’s contributions as well as arguments

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along with his suggestions led to development over accounting theory and in financial
reporting as well (Senn 2014).

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