Paradigm Shift of Accounting Theory and its Adaptation in Business Practice

Abstract

This study investigates the paradigm shift in accounting theory and practice amid digital technology, globalization, and regulatory changes. It explores the transition from normative to positive accounting and highlights the challenges and opportunities for businesses, particularly SMEs in Indonesia, in adapting to these new approaches. Using a qualitative comparative meta-analysis, the research finds that modern accounting practices are more relevant for understanding and predicting real-world decisions. However, businesses face obstacles such as implementation costs, skills gaps, and complex standards. The study underscores the need for technology investment, simplified standards, and further research to help businesses navigate this transformation.