The theories discussed in this paper relate to current practices of accountants or how accountants should perform activities in the future. Although some theories may seem similar in nature but they are actually quite different from each other. The basic difference in positive and normative theories is the presentation of facts in the current scenario and the presentation of information in optimal conditions. The positive accounting theory presents concepts in a current perspective but normative theory is based on change in future implementation of accounting procedures.
Accounting under ideal and non ideal conditions theory describes the recording and presentation of financial data based on assumptive or actual data whereas decision usefulness theory explains how concepts and theories of accounting can be implemented to make useful decisions not only by the managers but also by the users of financial statements. The agency theory of accounting though deals with the role of managers as agents of the shareholders but is quite different from the moral hazards theory which presents the level of risks or hazards if these agents act in a dishonest manner.
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