A critical evaluation of the usefulness of financial accounting theory to practicing accountants
Summary :
Table of Contents
- Executive summary
- Introduction
- Behavioral accounting research
- Importance of behavioral accounting research
- The Limitations of behavioral accounting research
- Ethics Consideration in behavioural research in accounting
- Lessons learnt
- Conclusion
- Bibliography
Abstract
When I started this course, I was told by a very competent person that financial accounting theory or ACC3116/5216 is about theories which relate to financial accounting practice to help students develop skills as accountants for doing bookkeeping, applying accounting standards, and exercising judgment and making decisions. From this alone, I say that the course, financial accounting theory, is useful for practicing accountants today. Furthermore, although the course was designed for students, specifically to introduce students to popular accounting theories, to help the students explore the incentives or motivations that exist when making financial reporting decisions or evaluating the decisions of others, and to improve students' written communication skills and critical thinking skills; practicing accountants are not perfect. They still need to be continually updated on the changes in the accounting field specially changes in accounting theories. They still need to improve their decision making, analytical, and communication skills. And what better to do these than the financial accounting theory course? Sometimes a practicing accountant, whether he or she is an auditor, manager or company accountant, needs to touch base with the profession. Through the course's introduction, a practicing accountant can do this. The course's introduction talked about what is meant by accounting theory, how theories developed over time, and how theories are actually formulated and tested
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