v Meaning accounting theory.
The term theory is used in different ways and other terms such as ‘hypothesis’ are often used as synonyms. The simplest form of theory is statement of a brief expressed in a language . one definition of a theory is that it is a deductive system of a statement of decreasing generality.
Another definition given by popper , emphasis the empirical nature of theories rather than the logical component stressed by Braithwate .
v Kinds of theories.
Pragmatic theory.
Syntactic theory.
Semantic theory.
Normative theory.
Positive theory.
v Accounting theory in real life?
[Q] Are multinationals taking over the edible oil industry?
(Business line , dated September 19,2011,page no.1)
The nasdaq-listed archer daniels midland company acquired two oil seeds processing facilities earlier this month from geepee agri pvt ltd. At kota rajastan and akola,mharashtra.these processing facilities are in addition to ADM’s recent purchase of the entire stake in tinna oils that has facilities to process soyabean and sunflower in latur ,soyabean and sunseed processing facilitiesof madhur agro in Nagpur. Its negotiatiation to acquire the processing facilities of Bhopal based bhaskar group.
In march , cargil inc bought the premium sunflower brand sweaker from marico in a deal worth over Rs. 200 cr. Last November ,the us based firm bought the rath vanaspati brand from agro tech , reportedly for rs 120 cr.
Last week, another multinational and swiss based glencore hit the headlines on the possible takeover of ks oils based at morena , madhyapradesh.
Ruchi soya itself saw its stake worth Rs.300 cr. Being bought by Chennai based siva group.the group invested 300 cr. And no share beyond that has been allotted, said Mr.Arora.
My view of theory.
v Pragmatism.
‘’Pragmatism means how accounting concepts and their real world corresponding events or objectaffect the people’s behavior. This concern is revealed by one statement on the objective of accounting ,namely that it should provide useful information for decision making to certain interested parties. In recognition of the pragmatic nature of much accounting theory, a popular approach to theory formulation is the decision model .the initial premise of the decision model is that accounting information must satisfy information must satisfy the information needs of users.
Another pragmatic approach is to observe that people react to the same message in different ways . in Accounting context , the release of an accounting standard may motivate some managers to support that standard while others ll lobby for its withdrawal. ‘’
I am strongly believe in that is pragmatism theory , its based on the behavioral approach and real world because of its speaking about market ability of edible oil companies and how effect its creating with market and the possibilities highly supporting for oil companies.
So here we can find The nasdaq-listed archer daniels midland (ADM) company acquired two oil seeds processing facilities earlier this month from geepee agri pvt ltd. At kota rajastan and akola,mharashtra.these processing facilities are in addition to ADM’s recent purchase of the entire stake in tinna oils that has facilities to process soyabean and sunflower in latur ,soyabean and sunseed processing facilitiesof madhur agro in Nagpur. Its negotiatiation to acquire the processing facilities of Bhopal based bhaskar group.
The ADM company has forecasting the market and future its purely based on behavioral approach market .
Likewise cargil co. and other US companies taken over the indian edible oil industries, it may real way of approach and future earning capacity of edible oil industry.
Buyer companies are expecting high return for long term in the case of good marketability.
The same thing happened to siva companies too , they are also bought edible oil industry with same views.
Now I can say here they used pragmatism theory .!!!
