the society. In this report‚ it will use Legitimacy theory to explain BP’s response to this event. Legitimacy theory can be treated as a explanation for voluntary corporate disclosures in annual report. As (Dowling&Pfeffer‚ 1975) says a corporation must act in congruence with norms and society value. First of all‚ Legitimacy theory is based on the concept of substantive rationality and replies upon the notion of a social contract. This theory asserts that organizations seek to ensure that they
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Reading 1.2 - Accounting theory and development Accounting Theory Construction with Inductive and deductive approach Deductive approach vs. Inductive approach in accounting theory construction Deductive reasoning entails a valid argument in which it is impossible to assert the premises and to deny the conclusion without contradicting oneself. Deductive approach to accounting theory construction begins with establishing the objective of accounting. Once identified‚ definitions and assumption
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state) be P(L) = 0.5 We assume that the amount of utility or satisfaction Ajay derives from a payoff is equal to the square root of the amount of the payoff. So‚ we get Ui(a) = √x‚ x≥0 Where x is the amount of the payoff The decision theory tells us that the act with the highest expected utility should be chosen. We denote the expected utility of act a1 (AB Ltd.) by EU(a1) and the expected utility of act a2 (XY Ltd.) by EU(a2). Thus‚ we get EU(a1) = 0.5 x √1089 + 0.5 x √0 =
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IN THE SESSIONS COURT OF KUALA LUMPUR CASE NO. 62A-160-2007‚ 62A-159-2007‚ 62A-208-2007 & 62A-209-2007 PUBLIC PROSECUTOR V 1. TAN SIOK WAN 2. LEE SIN TECK 3. LIM KIM MING 4. LIM KIM HAI WRITTEN SUBMISSIONS OF THE PROSECUTION AT THE END OF PROSECUTION CASE May it please Your Honour‚ The Prosecution submits that it has respectively proven its case beyond reasonable doubt on the following charges and therefore prays that the defence be called on all the charges
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critical theorists assess research based on the Positive Accounting Theory? Accounting researchers tend to accept current accounting systems. Rather than focusing on why accounting systems favour certain classes of society‚ research is mainly carried out to such things as what accounting methods are most appropriate in certain circumstances‚ what motivates managers to use one accounting method over another and disclosure. By looking at accounting with a critical perspective is to recognise the way in
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Question 3: Paragraph 81 states that if the amount of consideration to which an entity will be entitled is variable‚ the cumulative amount of revenue the entity recognizes to date should not exceed the amount to which the entity is reasonably assured to be entitled. An entity is reasonably assured to be entitled to the amount allocated to satisfied performance obligations only if the entity has experience with similar performance obligations and that experience is predictive of the amount of consideration
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136 Positive Accounting Theory and Science JCC Journal of CENTRUM Cathedra ™ Positive Accounting Theory and Science by M. Humayun Kabir Senior Lecturer‚ Faculty of Business Auckland University of Technology‚ Auckland‚ New Zealand Abstract This paper examines the development of positive accounting theory (PAT) and compares it with three standard accounts of science: Popper (1959)‚ Kuhn (1996)‚ and Lakatos (1970). PAT has been one of the most influential accounting research programs
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Compare and contrast normative and positive accounting approaches: Definition of PAT: Watts and Zimmerman (1986) defined Pat as a theory that seeks to explain and predicts particular phenomenon. It is concerned with explaining accounting practice. The three basic hypotheses as outlined by Watts and Zimmerman (1978) underlying PAT are: 1. Bonus plan hypothesis: The bonus plan hypothesis is that managers of firms with bonus plans are more likely to use accounting methods that increase current period reported
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`Accounting 6135‚ Advanced Accounting Theory Arthur G. Hendricks‚ Ph.D.‚ CPA professor BU 410 Thursday 7:10 PM to 10:00 PM Required Texts 1. Scott‚ W.R.‚ Financial Accounting Theory‚ 5th edition‚ Prentice Hall (Pearson Education Canada‚ Ltd) 2009 (ISBN 978-0-13-207286-1) 2 Concepts Statement #7‚ Using Cash Flow Information and Present Value in Accounting Measurements‚ FASB‚ February 2000. 3. Optional; The Wall Street Journal. You are expected to read the financial pages of the news media
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Positive Accounting Theory: A Ten Year Perspective Author(s): Ross L. Watts and Jerold L. Zimmerman Reviewed work(s): Source: The Accounting Review‚ Vol. 65‚ No. 1 (Jan.‚ 1990)‚ pp. 131-156 Published by: American Accounting Association Stable URL: http://www.jstor.org/stable/247880 . Accessed: 31/10/2011 02:22 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use‚ available at . http://www.jstor.org/page/info/about/policies/terms.jsp JSTOR is a not-for-profit service
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