Alternative views of nature of accounting: Realist view assumes that an objective reality exists independently of the observer; the world of theory and reality are separate. This assumes that there is an objective reality that exists independently of our accounts of it. The task is to discover and record what it is that objectively exists. This assumes that the observer is independent of the events observed (and vice versa), and that our theories about the world do not affect the observers or observations made. Our observations are objective we merely see what is out there to be discovered. In accounting, this view assumes that the transactions and events that accountants describe and report exist independently of the descriptions themselves.

Do you agree with this view? Explain your point of view?

Why is accounting said to be political in nature? How can a conceptual framework help in the setting of accounting standards in a political environment?

How can the conceptual framework help users and preparers understand accounting requirements and financial statements?

There are competing theories regarding the need for and intention of regulation?

Name and Discussed two of these theories by explaining; their assumptions and arguments for or against regulations

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