Ddbates concerning knowledge are not relevant to accounting and its Essay

Ddbates concerning knowledge are not relevant to accounting and its practice - Essay Example As such, knowledge has its limits; some synthesis of object matter is needed through reasoning to create understanding. To objectively generate new knowledge various sources of knowledge exists that include; induction, intuition, observation, experience, testimony, and introspection among others. Plato cautions that those seeking to understand knowledge must distinguish it from opinion. For example, accounting statements have to be viewed objectively other than subjectively in creating reality and true knowledge. In my view, knowledge is fixed, absolute, and eternally true while opinions are changeable. Therefore, for one to be a true knowledge seeker, then they must naturally not consent to opinions, but have to strive with unwavering passion to establish the essential nature of things that constitute facts. However, it is not certain that accounting operations can lead to such knowledge or truth, making knowledge not an essential consideration in accounting profession. On the other hand, Juan (2007) defines accounting as ‘the art of collecting, analyzing, recording and posting, summarizing and reporting financial results in a significant and orderly manner, aimed at providing useful concepts essential in decision making.’ Juan (2007) explains that accounting operates on clearly defined fundamental principles; those working in the profession have little discretion in influencing the output of end results from accounting practices. First, accounting operates on a going concern principle, which assumes that a business entity will continue its operations for unforeseeable future without termination. Secondly, accounting assumes that businesses are legal entities different from owners. In my view, the above two concepts in accounting are much based on assumptions rather than reality, which implies their application may not lead to reality or truth, but have been put in place to facilitate a standardized approach in accounting statements under a concep tual framework. Such assumptions may not lead to truth or reality in knowledge. Hines (1988) argues that the body of knowledge on which the profession of financial accounting is based shows that such professionalization took place a round a number of personal qualities such as respectability, honesty and independence, unlike other professions which presume the existence of knowledge as the legitimate way to claim expertise and professionalism. Hine notes that the knowledge foundation of accounting profession is problematic; in order to advance the accounting profession and maintain its credibility, there was need to stem such threats of the profession caused by the underlying knowledge foundation. For example, accounts perceived in high regard in ethics and morality will presents a perception of reality and truth in their statements compared to those who do not. This explains why some accountants may be preferred over others. Therefore, the increasing advocacy for a conceptual frame work is perceived to be the best way to counteract the threat of accounting profession to social legitimacy in the accounting profession .According to Hines (1988), a conceptual framework will bring together national accounting standards, sound accounting rules, stock exchange requirements, and other statutory requirements, which may vary from country to country. In my view, a conceptual