Theories used in measurement and valuation systems of accounting that are based on deductive reasoning from certain axioms or assumptions rather than experience. The 1960s was a particularly fruitful period for a priori research in financial accounting.
Deductive reasoning is a logical method of coming to a conclusion by deducing from established facts what actions to take or what assertions to accept.
Normative theories of accounting prescribe the accounting procedures and policies that should be followed, often based on a priori concepts and deductive reasoning, as opposed to those that are actually followed in practice.
