L

O
G
O

WHETHER ACCOUNTING
INCLUDES
IN THEORY THE THEORY OR
NOT?

Ma
ster Of
Accounti
ng
Faculty of
Economics
and business
Unive
rsitas
Airlangga
 G
r
o
u
p

Cintami Prananti Princess

(041514253035)

Rury Dyani Image

(041514253037)

Resha Dwi Ayu Pangesti Mulyono

 (041514253050)

Group 1

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C
o
n
t
e
n
t
s
p
a
g
e
 1

Introduction

The Definition Of
Theory
 Definition Of Accounting

Pros & Cons Of Accounting

Perspective/Aspect/TA Orientation

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C
o
n
t
e
n
t
s
p
a
g
e
 6

10

Target Accounting Theory

Approach To Reasoning
Orientation & Nature TeoriAkuntansi

Purpose & Function

Summary

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 In
tr
od
uc
tio
n

Each theory is a knowledge

that is recognized
his righteousness. The appearance of a
theory is not something that happens
suddenly. The theory will appear based
on a
the process of testing assumptions,
and summary. This means that a
theory must be formed from
assumptions about
reality (ontology), which continues on a
quest of truth
based on the assumption
(epistemology) and the purpose of the
top science
 knowledge (axiology), then based on
the epistemology
It is believed will be formulated in
testing methodology
knowledge. Obviously the existence
of that ontology, epistemology,
axiology, and methodology is
something mutual
relate
d. (Kamayanti, 2014)

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 Taken in 1977 by the American
Accounting Association-AAA
Accounting Association ( America)
with the publication of the Statement
on
Accounting Theory Acceptance-
SOATATA (
Statement of Accounting Theory and
reception Accounting). This
Pernyaatan consider the
developments that occur in the in the
thought of accounting from the
viewpoint of "philosophy" of science.

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 The pros and
cons of
accounting

 Understanding accounting as provided by the

American
AICPA above as an art, then an accountant will
using the theory and practice of accounting
is not just based on the theories, but also use
your creativity in resolving the problems facing
in the field.
 Starling (1975) said that accounting is a science
not
art, because art is not able to solve the
problems existing accounting. But Stamp
(1981) and Baccouche (1992) with various
reasons expressly say that accounting is not a
science. Even some of those experts also said
that accounting is not an art or science, but
accounting is technology, because according
to their accounting is part of the practice, so if
accounting is considered Science then to be
used to affect a particular social must first be
processed into technology. (Littleton, 1974;
Sudibyo, 1987; Gaffikin, Suwardjono 1991dan,
2005).
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FORMULATION
OF THE
PROBLEM

Wheth
er the
accoun
ting
is the theory or
not?

What is the
significance
 of the
theory
a
c
c
o
u
n
t
i
n
g
?

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 What is a
Theory?
(Tamburaka, h. E
Rustam; 1999)

The theory is the source or upstream of a scientific

proposition, how to test it
is through a research procedure with the assumption or
hypothesis-
hoipotesis then tested or proven based on data that
co
llected

Theories can be
tested, modified, or
used as a guide for research
or
as a basis for
evaluation.
 Deductive Inductive

general specific specific general

 What is a
Theory?

Llewelyn (2003)

5 level of theory to
qualitative empirical research

metaphor theorizes (imagine and collect

those
experiences);

finding theorizes (sort out experience);

 concepts theorizes (connecting structure and subject with the
practice);

theorizing settings (explain the

phenomena)

theorizing structures (describe structurally and in large

scale
from social reality) which is also referred to as
grand theorizing.
LOGO

THEORY OF
ACCOUNTING?
Hendriksen and Van
Breda (1992)

"... in the form of logical

reasoning.
a set of broad principles
(a broad set of priciples)
the
provide general reference
rerangka to evaluate the
accounting practice
and provide guidance in
developing practice and procedure
the new
accounting "
 Accou
nting
Theor
y

Macf
oedz (1996)

concepts, standards,
mode, hypotheses and
a related method
extracted from the
disciplines of philosophy of
the Academy
 and science to explain
and
predict business
phenomenon.

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 Accoun
ting
Theory

Soeward
jono (2012)

Understanding the theory of

accounting depends on whether
accounting is seen as a science or
technology.
 When Accounting is seen as Science
then
It has a positive
Accounting theory.
 when Accounting is seen as the
technology then
Accounting theory
are Normative.
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LOGO

Accounting
?

The American Institute of Certified

Public Accountants (AICPA)

the art of recording, categorization, proper

compaction and stated
in units of currency, transactions and
events
that at
least is both financially

Horngren and
 Harrison (2007)

information systems that measure business activities, process data

into a report,
and
communicate the the results to the
taker the decision of the

Suwardjono (2012)

1. as a set of knowledge
the provision of services in the form of financial information
kuantatif units Organization and ways of delivery (reporting)
information
to interested parties to decision making

2. Accounting as the process, functionality, or

practices
the process of identification, confirmation, measurement,
recognition, classification, mergers, compaction, and presentation of
data happens from basic financial events, transaction- a
transaction operating activities, or an organizational unit for the
generating relevant information to interested parties.
 Accounting and Accounting Theory:
science or technology?

A
ccounting

Taxonomy

Understanding Accounting

Understanding
Accounting Theory

The results of the

 Science

Social studies: study

symptoms of a social/human

Scientific explanation
with the scientific method
inductive/empirical

Theory or explanation
scientific
as a generalization

Technology

With a
System
Reporting

Logical reasoning
with consideration
value/environment
 Rerangka concept
as the justification and

20-Oct-15 "Transitional" 15 policy

Perspective/Aspect/Orientation
Of Accounting Theory

•
Objectiv
es
(goals)
Positive vs.
normative
• Studies in the theory of
semiotics to communication
Semantics, pragmatics,
and sintaktik
• Approach to
reasoning
The
deductive versus
the inductive
20-Oct-15

"Transitional"
16
Target
Accounting
Theory

P
o
s
i
t
i
v
e
:

An explanation or reasoning to
show
the scientific truth of a
statement or
 the phenomenon of accounting as
it is appropriate the facts. The fact
as a target.
N
o
r
m
a
t
i
v
e
:

An explanation or reasoning to
justify
the feasibility of an accounting
treatment best suits the
intended purpose. Value as a
target.

20-Oct-15
"Transitional"

17
 Differentiator
Form of statement
The tone of the statement
Problem areas
The base is a false assertion

Target Theory

The Theory Of Positive

is
descriptive
facts
The Normative Theory
should/ought to
prescriptive
values/idealism

Theory of acceptance criteria Base/test method

objective/empirical
true/false
Science/scientific

Subjective/reasoning
good/bad
art/judgment

G
u
l
 o
t
i
n
H
u
m
e

20-Oct-15

"Transitional"

18
 Probl
em
Areas
Positive The normative

Need explanation and empirical evidence

Need a logical reasoning

1.

2.

3.

Does information flow

Treasuries have
the content of the information?
What are the factors
affect the level of
voluntary disclosure?
Why companies
large tend to choose
the preparation method of MTKP?

1.

2.

3.

When sewaguna must

capitalized?
How to change
the price calculated
and presented in the financial statements?
Tepatkah term load
for expense and cost
for cost?
20-Oct-15 "Transitional" 19
 Studies in the theory of
Semiotics to communication

The reality of the

Symbol

The influence of the

Information Semantics
Information Sintaktik

Information Pragmatics

Carefully

What is the meaning/message of the conceived? What is the

effect?
(Contents of the sign language) (The effectiveness
of sign languages)
What

does the
 symbol
logical?
(A formal
presentation of
sign language)

See accounting
application in Figure
1.1

20-Oct-15

"Transitional"

20
 Kebermanfaatan/Effectiveness in the
theory of Pragmatics

T
he capital markets

User/
Market participants

Model
Decision Making

Merefleksi
Behavior change

Accounting information Return, price, or

or event voluma shares
 Association
records indicate kebermanfaatan

20-Oct-15

"Transitional"

21
 Approach To
Reasoning
Reasoning: A logical and systematic thinking
processes to form
and evaluating the validity/feasibility of a
statement, summary, explanation, or
principles.

D
e
d
u
c
t
i
v
e
 Lose the statement, summary, explanation,
or the principle of
on the basis of the general concept/basic
agreed and considered correct.
I
n
d
u
c
t
i
v
e
Lose the statement, summary, explanation,
or the principle of
General observations on the basis of
a few cases or Genesis.
Discusse
d further in Chapter 2
20-Oct-15

"Transitional"

22
 The Orientation Of
Accounting Theory

Normative-deductive Positive-inductive

Semant
ics

Prag
mati
cs

Sintakti
k
20-Oct-15

"Transitional"

23
 The
Verificatio
n Theory

Aspects of the theory

Semantics Sentaktik Pragmatics

Positive
Deductive Inductive Normative

Test approach
Empirical evidence, logical reasoning
Logical reasoning
 Empirical prediction, power
Empirical, scientific method
Logical reasoning, a value judgment
Deductive, logical reasoning
Empirical, scientific methods of prediction, power

Logical reasoning are

discussed in Chapter
2

20-Oct-15

"Transitional"

24
LOGO

THE NATURE OF
ACCOUNTING
THEORY
According To Dr. Winwin Yadiati,
S.E., M.Si, Ak
(
2007)

The nature of accounting theory

that is more descriptive
(positive), which describes the
and predicted variables-variables
theorized what it is and
prescriptive (normative), that
describes what the

should ordescribe
variable in accordance with
certain rules and how it
should be.
LOGO

THE NATURE OF
ACCOUNTING THEORY
Accounting theory has several properties, including
the following:

 is a set of logical, interrelated and

the general framework
 closely related to the preparation of the accounting
policies
 should include all the accounting literature that gives
the different approaches each other
 should be able to give a description of practice
accounting, answer and explain all the phenomena
aspects influenced the application of a method in
practice accounting.
 must be able to explain why the company more
LiFO accounting methods tend to use FIFO in dartipada
assess its
preparation
 should be able to predict or even find symptoms
accounting is not yet known
 very important in drawing up and verifying the principle
 accounti
ng
THE PURPOSE OF
ACCOUNTING THEORY
L
O
G
O

The main purpose of accounting is to

provide
prinsif set of logical, interrelated,
which
menbentuk general framework, and
can be used as
reference to assess and develop
your practice
a
ccounting.
LOGO

THE FUNCTION OF
ACCOUNTING THEORY
According to the financial accounting standars board
(FASB), in theory
accounting on the
need for:

 Redirect constituent body of standards in

the
setting accounting
standards.

 Give grounding conceptual to

solve the problem of certain
accounting treatment when there is
no standard that set them up.
 Give leeway in drawing up the
boundaries
fin
ancial
report
 Increase user confidence and
understanding
against the significance
of the financial
statements.
 Enhance the appeal of the
financial statements.
 S
u
m
m
a
r
y

1.
 2.

• Been a lot of debate in the drafting of accounting

theory
whether accounting entered in a study of the theory
or not.
• Experts define accounting good as art, communication,
activity services, science and
technology.

• In our opinion in order to generate output that reliability

then accounting is a study of the theory but has a in a
study of the theory, too.

• The role of theory in accounting is very different

from the role of theory
used in science (natural science),.
Accounting tend to be developed on the
basis of a value judgment (value
judgement).
 3.

• The purpose and function of accounting theory which is very

memepengaruhi information
produced through the process of accounting in order
to be relevant and reliability.

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