1. Chapter 6 SATTA and Positive Accounting
Examine the uniqueness of SATTA
Appreciate the timing of SATTA
Define positive accounting and the positive approach

2. Theory IV Statement on Accounting Theory and Theory Acceptance-SATTA
AAA-Back to theory –1973
Timing?

3. Producing SATTA Process? Committee charge? Title significance?
Theory benchmarking! Not “son of ASOBAT.”

4. SATTA Report issued 1977 Conclusions: no single theory
Acceptance is key ala Kuhn… who?

5. SATTA Kuhn “The Structure of Scientific Revolutions” 1962.
How do we progress?
Kuhn’s pattern: Exhibit 6.2.
Key concepts:
Implications for accounting…

6. SATTA
Three implications of SATTA

7. SATTA Evaluation “Son or daughter of ASOBAT” would have been nice.
Concerns about theory.
Timing.

8. Positive Accounting New approach late 1970s thru 1980s Positive?
Positive view of purpose of theory:
explain reasons for current observed practice
predict unobserved practice
Founders:

9. Positive Accounting Focus
Focus and contribution of PA
Explain current practice
Determine why groups lobby to influence accounting practice
Determine impact of current practice on groups

10. Discussion Questions
Is accounting more of an art or science? Based on your answer, how well does Kuhn’s pattern apply to accounting?
What was the overall tone of SATTA: positive or negative? If negative, how could the authors of SATTA been more positive?