The Normative Specific Approach

The normative specific approach

Unlike empirical research, which concentrates on how users of accounting information apply this information in decision making, the normative specific approach to theory construction is concerned with specifying the manner in which decisions ought to be made as a pre-condition to considering the information requirement.

The normative specific approach focuses on the decision models which should be used by decision makers seeking to make rational decisions. This focus is seen as providing insights on the information needs of decision makers, as a basis for developing accounting theory.

The normative specific approach is used in this text as a basis for examining the information needs of investors and employees.


Interested in Income and Value

Read on: Empirical Approaches

Empirical approaches

The early 2000s witnessed a substantial increase in empirical research. One reason for this development was dissatisfaction with the normative approach, which had failed to produce the desired single and all-encompassing framework for treating the problems of accounting theory.

Indeed, none of the efforts invested in the 2000s in developing a normative theory of accounting gained sufficient acceptance. Many of the studies conducted produced untested conclusions, and often contained untested value judgements about accounting. According to Caplan,

'They... see: Empirical Approaches