Normative Accounting: a Philosophy Perspective

Abstract

Normative Accounting Theory is defined as a theory that requires and uses value judgments. The normative approach was unable to produce an accounting theory that was ready to be used in daily practice. This study aims to provide an overview of normative accounting theory based on the perspective of philosophy of science. This study analysis used five aspect of philosophy perspective, namely epistemology, ontology, axiology, ethics, and heuristics. From the ontological aspect, normative accounting has ontological foundations as a science. From the epistemological aspect, normative accounting theory is developed based on the epistemological underpinnings of the philosophy of science. From the axiological aspect, normative accounting was developed based on the axiological basis of the philosophy of science. The development of a professional code of ethics, a code of ethics for examining and disclosing fraud or management manipulation, as well as the development of accounting based on religious values (eg sharia accounting) can be classified under this ethical aspect. This showed that normative accounting has ethics and heuristics foundations as a science. Normative Accounting is a product of knowledge that does not have absolute truth, so there is no need for differences in perspectives in researching accounting to become a conflict which can override the nature of epistemology, ontology, axiology, ethics, and heuristics.