Positive and normative statements The importance of detecting bias in arguments Whenever you are reading articles on current affairs it is important to be able to distinguish between objective and subjective statements. Often‚ the person writing an article has a particular argument to make and will include subjective statements about what ought to be or what should be happening. Their articles carry value judgements; they are trying to persuade you of the particular merits or demerits of
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Topic 1 Accounting and Society Prepared by Graeme Wines. One issue in Topic 1 that can be a little confusing is the distinction between inductive and deductive theories. The example of the topical area of climate change can be used to provide explanations of the distinction which may help your understanding. Inductive theory A descriptive (explanatory/scientific) theory‚ as these terms imply‚ suggest that the theory is attempting to describe or explain a particular phenomenon‚ and that
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Ancient moral theory explains morality in terms that focus on the moral agent. These thinkers are interested in what constitutes‚ e.g.‚ a just person. They are concerned about the state of mind and character‚ the set of values‚ the attitudes to oneself and to others‚ and the conception of one ’s own place in the common life of a community that belong to just persons simply insofar as they are just. A modern might object that this way of proceeding is backwards. Just actions are logically prior to
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Not-for-profit organizations also provide financial information to external users such as citizen groups and donors. As an individual‚ you provide financial information to the internal revenue service and to creditors when you seek a loan. 2. Accounting is often thought of as the “language” used to communicate financial information about a business. The primary method that profit-oriented companies use to provide financial information to investors‚ creditors‚ and other external parties is through
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Public Administration & Management: An Interactive Journal 6‚ 3‚ 2001‚ pp. 87-90 Normative Theory and Policy Evaluation Stuart Nagel MKM-PSO-DSI Center and University of Illinois I. PROFESSIONAL ETHICS An interesting question concerns the ethical obligations of people who do policy analysis research. Such research often involves ethical dilemmas that relate to: 1. Whether one’s purposes should include prescription or evaluation‚ as well as prediction or explanation. 2. Whether or not
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Chapter 1 Case 1-6 During the early 2000s‚ the roles of accounting and the auditing profession changed and several accounting scandals were uncovered. A. What conditions caused accounting and the auditing profession role to change during this time? In the mid 80s‚ the AICPA lift on the ban on advertising caused revenue generation to become more critical to partner’s compensation. The profit structure of CPA firms changed‚ and in 1999‚ revenues for management consulting accounted for more
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POSITIVE AND NORMATIVE ECONOMICS Positive economics deals with what is with how the economy works‚ plain and simple. If we lower income tax rates in the United States next year‚ will the economy grow faster? If so‚ by how much? And what effect will this have on total employment? These are all positive economic questions. We may disagree about the answers‚ but we can all agree that the correct answers to these questions do exist— we just have to find them. Normative economics concerns itself with
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state that the aims of disclosed discontinued operations and non-current asset disposal is to helped group of users of the financial statement to assess the financial effects. The definition of discontinued operation in IFRS may differ from other accounting standard‚ IFRS has defined discontinued operation is an asset or component of a company that either has been disposed or is regarded as held-for-sale‚ and also have any of the following conditions: 1) It represents a separate key business or an
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Normative theory and whistle-blowing Introduction Whistle-blowing in this context is the act‚ for an employee‚ disclosing what he believes to be an unethical or illegal behaviour to higher management (internal whistle-blowing) or to an external authority or the public (external whistle-blowing). Examples of unethical acts include sexual harassment and racial discrimination at work while illegal act include the accounting fraud by the Arthur-Andersen accountants for Enron (Sims & Brinkmann 2003)
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THE EFFECT OF BONUS SCHEMES ON ACCOUNTING DECISIONS A study by Paul M. Healy (1984) PRESENTERS Bonuses have been a type of compensation for corporate executives for decades. In fact‚ stock options‚ stock appreciation rights‚ and performance plans are other forms of remuneration in today’s world for executives. In 1984‚ a man by the name of Paul M. Healy conducted a research paper on the association between managers’ accrual and accounting procedures and income reporting.
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