Cognitive Perspective In Accounting Essay

The Cognitive Perspective of Learning Applied in the Accounting Field

Cognitive psychology has greatly contributed to the study of learning. The cognitive perspective posed the theory that learning is more than just reactions based on consequences and that it does indeed involve critical thinking, information processing and the functioning of the brain. Accounting is the systematic and comprehensive recording of financial transactions pertaining to a business, and it also refers to the process of summarizing, analysing and reporting these transactions to over-sight agencies and tax collection entities. And, in this diverse and technological era it crucial to think critically and have a sharp brain power- cognitive psychology - when gathering,

During the Great Depression in 1929, corporate America, and investors were rigid about the financial market and loosing hopes in the stock market that echoed distress in the financial arena around the world. Following World War 1, national issues have grown over investor confidence and the fall of the economy which prompted the American Institute of Certified Public Accountants to bring back faith in investments and coherence in publications of financial documents in a standardized, logical manner. During this thirty year process of implementing a standard setting for financial reporting the Cognitive learning perspective was used to strengthen the economy and overcome the Great Depression. So How Is Cognitive Learning applied in Accounting? When you tackle client finances, you don’t just manage their money; you also manage their emotions. There are psychological implications wrapped around financial dealings, and nobody knows that better than accountants who spend their lives delivering good, bad and ugly news related to clients’ financial health. The science of cognitive psychology as it relates to accounting hasn’t been around long, but practitioners who use it find it easier to understand the motives and personalities of their clients and anyone directed to their financial

Cognitive learning in the accounting discipline is vital because it is a fundamental process of the brain. Management accountants must choose from different alternatives to direct the organization to a successful path. Each decision must be clearly defined by the outcomes of that decision and cognition is vital in this process. Such processes to successful decision making is learnt at my undergraduate courses, so when the time for evaluation comes we are effective in our decision