Objectivity, relativism, and truth in external financial reporting: what's really at stake in the disputes?
Article Abstract:
The accounting community is divided over the issue of representational faithfulness and neutrality in external financial accounting. Some academics believe that the main goal of policy making is setting standards that will enhance the rationality and objectivity of reported information. Others say that neutrality and representational faithfulness are less important than a social or a political agenda, while there are also those who are convinced that financial statements can never represent all economic features or serve all informational needs. Finally, there are academics who insist that neutrality and absolute epistemological objectivity do not exist in accounting. Five philosophical presuppositions and principles are discussed that can guide accounting academics in assessing the validity of their arguments regarding the merits of alternative financial reporting practices.
Publication Name: Accounting, Organizations and Society
Subject: Business
ISSN: 0361-3682
Year: 1997
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The encoding and retrieval of numerical data for decision making in accounting contexts: model development
Article Abstract:
A model that describes how numerical data are encoded and retrieved for decision-making purposes in accounting is developed. The framework indicates the forms of encoded representations employed to encode numerical data in memory systems, determines the retrievability of these encoded representations, and identifies the variables that may have an impact on the encoding and retrieval processes. It is shown that affective or evaluative responses to numerical data play a major role in encoding and retrieval methods in accounting decisions. The 12 propositions described in this model are based on theoretical and empirical findings in such fields as cognitive development, human memory, social cognition and human information processing.
Publication Name: Accounting, Organizations and Society
Subject: Business
ISSN: 0361-3682
Year: 1995
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A decision-theory model of motivation and its usefulness in the diagnosis of management control systems
Article Abstract:
Rational decision theory was used to develop an expected utility model of managerial motivation. Accounting literature was reviewed, and data were obtained from 415 managers in 13 large firms. The model predicted effort and managerial performance reasonably well in empirical studies, but a directly-assessed measure of motivation would have behaved equally well or better, as well as being easier to use. Nevertheless, the newly developed model can provide insight into variations in motivation strength and the operation of the management control system.
Publication Name: Accounting, Organizations and Society
Subject: Business
ISSN: 0361-3682
Year: 1991
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