ACF2100 Lecture Notes - Lecture 2: Logical Reasoning, Financial Statement, Research I University
3 Aug 2018
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Document Summary
Accounting is viewed as a practical discipline. All accounting is premised on theories, e. g: Definition of accounting elements and recognition critieria (sac 1) A description, explanation or a prediction of accounting practice based on observations and/or logical reasoning. Logical reasoning in the form of a set of broad principles that: (1) provide a general framework or reference by which accounting practice can be evaluated and (2) guide the development of new practice and procedures. Theory can mean a lot of different things. + a belief or principle that guides actions or behaviour normative. + an idea or set of ideas that is intended to explain something positive. + the set of principles on which a subject is based or of ideas that are suggested to explain a fact or event. Accounting theories provide principles for decision making. + potentially better accounting and financial reporting practice. Help us understand what happens in the world.
