澳洲作业代写-Empirical accounting theory。PAT主要遵循三种假设，如奖金计划假设、债务或股权假设和政治成本假设。可见，与奖金计划有关的管理人员通常采用会计制度来增加当期报告的收入。为了提高组织的收入水平，债务或权益假设采用了促进收入水平提高的会计方法。从政治成本的角度来看，企业规模越大，其利润越倾向于呈现出价值越低的趋势。至关重要的是，PAT没有设计任何机制，让管理层采取行动，影响组织的绩效。
澳洲作业代写-Empirical accounting theory。PAT mainly follows 3 sorts of hypotheses, such as Bonus plan hypothesis, Debt or equity hypothesis and Political cost hypothesis. It is seen that managers related to the bonus plan are used to resort an accounting system that increases the reported income for the current period. To raise the income level of the organisation, the accounting method facilitating so is adopted for the debt or equity hypothesis. From the political costs perspective, it is seen that the larger the firms, the more tendencies they tend to show a profit amount of lesser value. Critically, PAT does not devise any mechanism that would undertake actions on the part of the management affecting the performance of the organisation.
In the case of PAT, it is heavily assumed that individuals act for their self-interest, keeping aside the organisational goal. The various economic literatures, like PAT seeks to maximise its benefit at other’s expense. For instance, the practise suitable for the maximisation of benefit for the agents or managers might not find any relevance with the benefits of the stakeholders involved. To tackle this situation effectively, an alignment of interest should be sought for linking the manager’s interest with that of the firm’s. In some cases, the output of the accounting system could be of a short-term in nature (Leo, 2009). This sort of management activities would adversely affect the firm’s performance and decrease its book value exploiting the information for private gain.
The Normative Accounting Theories could address this situation, as it seeks to provide guidance by selecting the most appropriate accounting procedure. It is in line with the coherent and consistent framework and goes well with the qualitative characteristics of the financial information. Further, this system is in consistence with the likes of International Accounting Standard Board (IASB). So it makes the system more reliable to be aligned with the Exposure Draft for an improved Conceptual Framework for Financial Reporting. It is specifically designed to achieve the objective of financial reporting along with the qualitative characteristics and constraints in the decision making process for the purpose of financial reporting. So it could be said that the adopted accounting methodology would suit the purpose in favour of the firm, as chosen for.
It could be concluded that the Positive Accounting theory does provide a narrow approach to serve the purpose of a selected few. It does not consider the overall interest of the stakeholders, rather community as a whole. Alternatively, the Normative accounting theories specifies the accounting system based on the suitability of the firm. It does not follow the ‘one size fits all’ concept, which in turn makes it harmful for the organisation. So academically as well as practically to have an overall interest and to promote a transparent accounting system, Normative Accounting policies find place in the financial management scope of the organisation. It not only specifies and designs the prescribed accounting system, but also confronts with the ongoing accounting standards practised widely and relevant to the whole system.