Is Accounting a Measurement Science

In: Business and Management

Submitted By rabibay
Words 5315
Pages 22
Measurement in Accounting: What is the Scale? In the last few years the field of accounting has been the subject of a critical review,the intensity of which is increasing as time goes by. Somehow, both within and without the accounting profession, there is a feeling of dissatisfaction with the information generated by the accounting process. Such dissatisfaction is leading to questions about the fundamental bases of Accounting. The practitioner claims to identify,collect,measure,record,analyse and report financial data useful for a variety of purposes. Unfortunately, recent financial turmoil emanating from some of the uses applied to accounting reports is causing accountants and other stakeholders to question the foundations of accounting. Some ask questions like is Accounting a Science or Art? If it is a science, what is its foundation in Science? Are their theories guiding the focus of accounting scholars? Are these theories the result of empirical findings and observations? Are the findings the outcome of diligent and rigorous measurement of phenomena? Does accounting measure any phenomena? Is the accounting phenomena amenable to measurement? Inshort is Accounting a measurement Discipline? Scholars are therefore re-examining the foundations of accounting to determine its suitability as a Science. A Science Discipline is founded on theories which are prediction of phenomena. These predictions are possible because rigorous and precise measurements of phenomena is achieved using instruments or tools. Therefore measurement is critical to any science discipline.

Accounting is regarded as a Social Science. The Social Science Disciplines are also regarded as Measurement Disciplines. These disciplines have theories based on quantitative and qualitatively observed phenomena. The phenomena observed in accounting is performance of economic…...

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