Transcript Chapter 6 SATTA and Positive Accounting

Chapter 6 SATTA and Positive
Accounting
• Examine the uniqueness of SATTA
• Appreciate the timing of SATTA
• Define positive accounting and the positive
approach
Theory IV Statement on Accounting
Theory and Theory Acceptance-SATTA
• AAA-Back to theory –1973
• Timing?
Producing SATTA
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Process?
Committee charge?
Title significance?
Theory benchmarking! Not “son of
ASOBAT.”
SATTA
• Report issued 1977
• Conclusions: no single theory
• Acceptance is key ala Kuhn… who?
SATTA Kuhn
• “The Structure of Scientific Revolutions”
1962.
• How do we progress?
• Kuhn’s pattern: Exhibit 6.2.
• Key concepts:
• Implications for accounting…
SATTA
• Three implications of SATTA
SATTA Evaluation
• “Son or daughter of ASOBAT” would have
been nice.
• Concerns about theory.
• Timing.
Positive Accounting
• New approach late 1970s thru 1980s
• Positive?
• Positive view of purpose of theory:
– explain reasons for current observed practice
– predict unobserved practice
• Founders:
Positive Accounting Focus
• Focus and contribution of PA
– Explain current practice
– Determine why groups lobby to
influence accounting practice
– Determine impact of current practice
on groups
Discussion Questions
• Is accounting more of an art or science?
Based on your answer, how well does
Kuhn’s pattern apply to accounting?
• What was the overall tone of SATTA:
positive or negative? If negative, how
could the authors of SATTA been more
positive?