Positivist approach to accounting

The positivist approach to accounting has been the stone in the shoe for some researchers in accounting science, since it is due to its social nature, according to them, it is more linked to the normative approach, that is why, through this article, It tries to highlight the importance of the conjugation of these two approaches in the accounting field, making clear that it is not intended to link one with the other.

Accounting can hardly be channeled through a single channel, either positivist or normative, since criticism of both approaches is required for the development of the profession. It is necessary to establish the comparison within them, for a better understanding of each one.

Introduction

The term positivist was first used by the 19th century French philosopher and mathematician Auguste Compte, who stated that each of the sciences or branches of knowledge must go through three different theoretical stages: the theological or fictional stage; the metaphysician or abstract stage; and finally the scientific or positive (Compte, 1984, p. 27)

This philosopher is considered the father of sociology, he tries to bring the study of humanity to a positive state, taking an interest in the reorganization of social life for the good of individuals through scientific knowledge.

Positivism cannot be a straitjacket in any social science, since researchers are free to choose the instruments, elements, theory, etc., that they believe are necessary for the development of their research.

Positivism

Positivism in accounting refers to the observation of economic facts objectively, where accounting is displayed as it is; it does not admit as valid other knowledge, but that which comes from experience, thus rejecting all absolutist and idealistic conceptions. The fact is the only scientific reality.

Positivists renounce what is vain to know and look for the facts and laws of phenomena and not their causes or principles, leaving the imagination to be subordinated by observation. That is why they achieve these laws and possess them with such precision and certainty that they allow, explain and predict the manifestations that take place in the accounting discipline.

The positive general theory, has elements embedded (number, value, monetary unit, time interval, economic objects, economic subjects, set, relationships) which are common in all accounting systems, these are developed to solve environmental problems (practical-normative) be it economic, social or cultural.

In an accounting system, the general theory and the environment must be consistent, in order to satisfy the needs of the information users and thus make the system successful.

The following assessment reveals one of the great positivist attitudes of accounting; This science comes to settle any value judgment in the elaboration of the general accounting theory, it only refers to facts and investigations that can be confronted with reality, it does not allow the interference of a normative investigation.

Accounting Regulation

Accounting regulation is a process that is based on real events for the application of standards, positive and normative. These norms, codes, decrees and laws are created in a very limited way, making it impossible to better apply the information according to economic reality; that is to say; They are mainly prepared for the keeping of books and records of the transactions of the entities, sometimes ignoring important events that are ultimately reflected in the Financial Statements; According to Sorter and Gans, the accounting rule must be accepted as adequate, rather than adequate because it is accepted. (Valmayor and Cuadrado, 1999, p.107). This has focused on a positive theory.

The issuance of standards must comply with the accounting uniformity in which the inductive method can be used, which, applied to the positivist field, establishes four stages: a) observation and recording of the facts: b) analysis and classification of the same: c) generalized conclusions through inductive derivation, and d) contrasting the conclusions; or the phases established by Richard Mattessich on this question can be used: - observation, experimentation and design, - qualitative and quantitative description, - generalization, - analysis, - interpretation and construction of the model, - verification and revision (Valmayor and Cuadrado, 1999., p. 106-107); In both methods, the researcher applies value judgments when selecting the observed facts (environment-company relationship) and when making the interpretation and construction of the model.

Researchers act normatively in the process of issuing a new accounting rule or rule, but after the accounting rules or rules are issued, their application is about what <> since they are limited, although there are some exceptions where the rules are more flexible and the accountant can apply, according to his knowledge or experience, what is best for the company for its economic development and competition in the market; Here the accountant already has a normative thought and shows that accounting is not only a bookkeeping, but a science that allows us to know and make economic decisions, which help increase profits and give solidity to the company.

It is not hasty to admit that accounting regulation should be supplemented mostly based on research theories, since from its beginning the theoretical part has been a key foundation to support positivism and normative also. The realization of principles does not occupy a relevant place, when they are developed without taking into account the reality of the environment.

In this trajectory, it is essential to find a point of balance in accounting standards, which is made up of elements of social control with enough force to keep a rule active beyond the circumstances that could determine its validity, becoming a symbolic standard.

Positivism Vs. Normativism

The accountant's task from the positivist approach, is framed to the recording of economic events and the preparation of financial statements according to the pre-established parameters, which is why the critical and reasoning part of the professional is not included, since their position is tied to the laws or rules that have been imposed.

Accountants should not close their eyes to research, since research, rather than just observing the facts that can be proven, opens the possibility of finding new paradigms that can change the future of accounting science.

Currently, it is important to highlight the role of social accounting, since this is a clear example of regulation, which allows registering the social impact, through the issuance of value judgments, which allow determining what could be or no; while in positivism, traditional accounting is limited to a pre-established mechanical process, which leads to putting down cold figures on paper, which in most cases are interpreted by professionals other than accountants.

The fundamental tendency of accounting is empirical research, which is why it has been considered as a new positive approach, since regulatory models are considered insufficient, always supporting accounting regulation in its empirical implications.

The normative nature of regulation and the development of hypotheses to specific objectives are basic points in which accounting theory, explicitly discussed, plays a basic and important role.

According to Kelly Newton, it is difficult to construct a normative theory, without the positive knowledge of the field in which it operates, (Tua, 1983, p. 890)

C onclusions

The positivist approach has to do with what is, was or will be, while the normative is more flexible, admitting what should or should not be, good or bad, according to the social, economic or cultural environment in which develop the accounting system.

Current students must become aware of the training they have received, and take steps to change that positivist thinking that they have had until now; The possibility of making value judgments must not be denied, it is necessary to be more daring when expressing these conceptions, and more when it comes to the professional field, it is not possible to continue letting professionals from other areas continue to make the decisions that are the responsibility of accountants. Furthermore, because the person who best interprets the records, statements or balances is the person who performs them, because they have the knowledge, and whoever has the knowledge has the power.

Bibliography

Cuadrado Ebrero, Amparo and Valmayor López, Lina. Accounting Research Methodology. Madrid: McGRAW-HILL, 1999. Tua Pereda, Jorge. Accounting Principles and Standards. Madrid: ice, 1983. Compte, Auguste. Speech about positive spirit. Madrid: Proyectos Editorialiales SA, SARPE Edition, 1984. Romero León, Henry Antonio. Scientific Theories and Accounting Theory. In: accounta's magazine legis, No. 8, October - December 2001, pp. 152-154.Mejìa Soto, Eutimio. Introduction to Accounting Thought by Richard Mattessich. In: international journal of accounting and auditing legis, No. 24, October-December 2005, pp. 140-141.

Mejìa Soto, Eutimio. Introduction to Accounting Thought by Richard Mattessich. In: international journal of accounting and auditing legis, No. 24, October-December 2005, p.140-141

Tua Pereda, Jorge. Accounting Principles and Standards. Madrid: ice, 1983.