Table of Contents
Introduction 2
Summary of the Article 2
Overview of Positive Accounting 2
Research Question 3
Theoretical Framework: 3
The Significance and Limitations of the Article: 4
Findings of Article 4
Conclusions 5
Bibliography 5
References 6

Introduction
The main purpose of this report is to focus the positive accounting theory “Towards a Positive Theory of the Determination of Accounting Standards” and written by (Watts & Zimmerman, 1978) Ross L. Watts and Jerold L. Zimmerman, who indicated with a number of significant research in order to describe and contribute positive accounting theory
Summary of the Article

The element of this article has found that management wealth are based on …show more content…

Theoretical Framework:
Regarding of this assessment is assisting and understanding of positive accounting theory how management of organization are making legal decision rather than management self- interest. PAT is demonstrating how to define the problem by using theoretical framework knowledge, which logically structured representation of the concept, variable and relationship between organization and decision making. Also framework would help us collect and aggregate a database from the article to understand and how to basically identify all the key concepts.
According to (Kabir, 1991) in the last decade positive accounting theory (PAT) has been one of the significant research on the connection between cost, return and demonstrating of accounting choices to calculating tax and some cost items.
There are some discussions about indicating attitudes of organization management according Watts and Zimmerman by assuming from their positive accounting theory. Firstly compensation of management used in this research is encouraging amends and if price of share increase that can be calculated in a financial way. Secondly behaviour of management benefits whether AS are based on interest for their own. Consequently all of those factors that could influence