Chapter 6 SATTA and Positive Accounting

1
Chapter 6 SATTA and Positive Accounting

• Examine the uniqueness of SATTA
• Appreciate the timing of SATTA
• Define positive accounting and the positive
  approach

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Theory IV Statement on Accounting Theory and
Theory Acceptance-SATTA

• AAA-Back to theory 1973
• Timing?

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Producing SATTA

• Process?
• Committee charge?
• Title significance?
• Theory benchmarking! Not son of ASOBAT.

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SATTA

• Report issued 1977
• Conclusions no single theory
• Acceptance is key ala Kuhn who?

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SATTA Kuhn

• The Structure of Scientific Revolutions 1962.
• How do we progress?
• Kuhns pattern Exhibit 6.2.
• Key concepts
• Implications for accounting

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SATTA

• Three implications of SATTA

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SATTA Evaluation

• Son or daughter of ASOBAT would have been nice.
• Concerns about theory.
• Timing.

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Positive Accounting

• New approach late 1970s thru 1980s
• Positive?
• Positive view of purpose of theory
• explain reasons for current observed practice
• predict unobserved practice
• Founders

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Positive Accounting Focus

• Focus and contribution of PA
• Explain current practice
• Determine why groups lobby to influence
  accounting practice
• Determine impact of current practice on groups

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Discussion Questions

• Is accounting more of an art or science? Based
  on your answer, how well does Kuhns pattern
  apply to accounting?
• What was the overall tone of SATTA positive or
  negative? If negative, how could the authors of
  SATTA been more positive?