Entity`s Accounting Policy and Decision Usefulness of Financial Reporting in the Context of Accounting Positive Theory

Author:Rodica BĂLĂŞOIU, Ph. D. Student; Celestin CONSTANTIN, Ph. D. Student

JEL:M410

DOI:

Keywords:accounting positive theory, accounting policy, accounting practices, accruals

Abstract:
Accounting research, which was seeking scientific bases, developed progressively towards an empirical approach. Related to the development of economic sciences, introducing a positive approach required the use of new tools whose first experiments were made on the validation of assumption of decision utility for accounting information. Empirical tests revealed that the market has acuity to anticipate the content of accounting information to be disclosed, which raised the issue of utility nature of accounting rules and, in general, that of the institutional role of accounting as a financial information production system.\r\nThis article is an overview of research conducted, whose subject is to develop the concept of positive accounting research and to reflect the importance and actuality of relevant assumptions in terms of accounting practices of entities, formulated and tested through positive actions.\r\n\r\n

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