BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The period 1956-1970 is labeled the ‘normative period’, called the formative period because it was the period when accounting theory attempted to establish norms for best accounting practice.

Detailed explanation-2: -The literature dealing systematically with normative accounting theory begins in the first decade of our century with two German scholars, Johann Friedrich Schar (1846-1924) and Heinrich Nicklisch (1876-1946).

Detailed explanation-3: -What is Normative Accounting? Positive accounting attempts to describe accounting as it is actually done. By contrast, normative accounting attempts to describe accounting as it should be done. It aims to describe what a company or investor should do, often using subjective morality derived from some theory.

Detailed explanation-4: -Normative theory involves arriving at moral standards that regulate right and wrong conduct. In a sense, it is a search for an ideal litmus test of proper behaviour. The Golden Rule is an example of a normative theory that establishes a single principle against which we judge all actions.