Griffith University 3101AFE 7101AFE - Accounting Theory and Practice Lecture note.ppt

* * * * * * * * Can we prove a theory? (cont.) Falsificationists would argue that a theory can never be proved, though it might be the ‘best’ at a particular point in time /wiki/Isaac_Newton /wiki/Einstein . “Has Newtons law of gravity been thrown onto the trash heap? Is it wrong? No, it is a very valuable first approximation which is good enough for almost all purposes.” /physics/gravity.htm Safer to say that our evidence supports a particular theory 31/42 Evaluation of theories—the position taken in this book Theories of accounting are only abstractions of reality The choice of one theory in preference to another is based on value judgements Cannot expect to provide perfect explanations or predictions of human behaviour or assess what types on information users actually need Eg, “Stay and fight” for bushfires in Victoria. The temperature on “Black Saturday”, 7th February 2009, was 47 degrees in Melbourne – their hottest day ever. The previous highest temperature was 45 degrees on “Black Friday”, 13th January 1939. 32/42 Protecting People During Bushfires .au/getdoc/a19c8100-3ae9-43bc-896f-57cbe35ca680/Executive-summary Stay or Go In Victoria, community response to bushfire is guided by a policy that directs residents to Prepare, Stay and Defend or Leave Early, known more commonly as the ‘stay or go’ policy (Chapter 7). This policy has been developed over many years and reflects an understanding from research into past fires that with proper planning and prior preparation, most buildings can be successfully defended from a bushfire. The alternative is to plan to leave early. An analysis of this policy approach against the background of the recent fires has led the Commission to conclude that there has been insufficient emphasis on the risks of staying and defending. Unquestionably the safest course is always to leave early. To stay may still be an appropriate option for some, particularly in less dangerous bushfires, but a number of conditions need t