The PowerPoint Highlights the Importance of Inductive Approach in developing accounting theory. It is presented in the accounting theory class at Teresian College.
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Inductive Approach in Accounting Theory
1. Accounting Theory
Inductive Approach in Accounting Theory
Supervisor: Arun Devapura W
Student: Kazim Ehsan
M.Com 1ST
Post Graduate Department of Commerce
Teresian College
119/10/2019
2. Content
Introduction to Induction Approach
Meaning and Definition of Induction Approach
Inductive VS Deductive Approach
Application of Induction Approach in Accounting Theory
References
3. Introduction
Inductive reasoning, or induction approach , is one of the
two basic types of inference. An inference is a logical
connection between two statements: the first is called the
premise, while the second is called a conclusion and must
bear some kind of logical relationship to the premise.
4. Meaning & Definition…
Meaning: Inductive approach, also known in inductive reasoning,
starts with the observations and theories are proposed towards the
end of the research process as a result of observations.
Definition: Inductive Approach “involves the search for pattern from
observation and the development of explanations – theories – for
those patterns through series of hypotheses”
7. Inductive Approach in Accounting Theory
Applied to the accounting, the inductive approach begins with
observations about the financial information of business
enterprises and proceeds to construct generalizations and
principles of accounting from those observations on the basis of
recurring relationship.
8. Inductive Approach in Accounting…
The advantage of inductive approach is that it is not
necessarily considered by a preconceived model or structure.
The researchers are free to make any observation they may
deem relevant.
If the data have repetitive relationships, then some principles
can be formed and in some cases new thoughts can be
induced. If the observations are not influenced by current
principles and actions, more innovative thoughts can be
induced.
9. Conclusion
In developing accounting theory, inductive approach is used more
but most of the times accounting theories have been formed through
combining deductive and inductive arguments. Accounting theorists
generally begin with inductive reasoning and change their course
towards a deductive approach in order to improve the theory through
development of understanding and explanation power.