Accounting Theory

Accounting is in the current state of being an art. It is referred to as a social science, but the question that still remains in view today is should accounting be an art or should it actually be a science? Although the move to scientific based accounting would be desirable in today's society it is not possible.

When you consider the facts of this issue in a true debate style, the scientific based approach does not work and cannot do today what the current system does for its users.

Accountants provide information that is reliable, verifiable and precise. As well it is crucial those accountants are considered trustworthy and that the information can be confirmed by another source. Without this there is no future of accounting and there would have never been a past. Accounting is left open to interpretation to those who need to view the information. Many different people look at accounting information, many different cultures, organizations and ethnic groups use this information for different reasons. To make accounting scientific based makes it one set or rules, a set of laws to follow by. If you held a gun to a scientist and said make the speed of light faster he could not change the speed of light, because it is a scientific based law. One set of properties defines that law. In accounting we need different information for different situations. Internal departments require different information then external and as such their needs to be different rules and guidelines. As well different cultures or ethnic groups would have different standards or objectives when measuring or using accounting information. Sterling, the man who has led the charge to switch to a scientific based approach, described scientific accounting "as a process of keeping track of real things in the real world." But in different cultures and different parts of the world who determines exactly what is real, and what the terms of realism between cultures are. Some cultures cannot even speak of death because to do such a thing puts a curse on the person you are talking about so how would you do estate accounting; you could not possibly plan such a thing in that culture because it is forbidden. In a scientific based approach you would be required to however as you would be following the rule based approach laid out before you. The only thing that we absolutely know as real is the knowledge of "I think, therefore I am".

Accountants

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