Positive Accounting Theory: Theoretical Perspectives on Accounting Policy Choice

Shabrina Tri Asti Nasution, Rizqy Fadhlina Putri, Iskandar Muda, Syafruddin Ginting

2018

Abstract

This article reviews the positive accounting theory and its relation to accounting policy choice and identify its broad contribution to the accounting research. By using literature reviews, there are researches that discussing how management influenced by positive accounting theory before their decision of certain accounting policy. The view from positive accounting theory that it can predict management’s choices regarding accounting policies to maximizes their own best interests. The choices that firm makes are related on what industry the firms are in, and the factors within that industry. Although three hypotheses from positive accounting theory such as the bonus plan, the debt covenant and the political cost, has been subjected to numerous criticism from different perspectives, positive accounting theory will continue to be part of empirical research nowaday and the basic questions that related to accounting positive theory are still relevant today.

Paper Citation

in Harvard Style

Nasution S., Putri R., Muda I. and Ginting S. (2018). Positive Accounting Theory: Theoretical Perspectives on Accounting Policy Choice.In Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES, ISBN 978-989-758-432-9, pages 1128-1133. DOI: 10.5220/0009506011281133

in Bibtex Style

@conference{unicees18,
author={Shabrina Tri Asti Nasution and Rizqy Fadhlina Putri and Iskandar Muda and Syafruddin Ginting},
title={Positive Accounting Theory: Theoretical Perspectives on Accounting Policy Choice},
booktitle={Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,},
year={2018},
pages={1128-1133},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009506011281133},
isbn={978-989-758-432-9},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,
TI - Positive Accounting Theory: Theoretical Perspectives on Accounting Policy Choice
SN - 978-989-758-432-9
AU - Nasution S.
AU - Putri R.
AU - Muda I.
AU - Ginting S.
PY - 2018
SP - 1128
EP - 1133
DO - 10.5220/0009506011281133