Abstract

The present research attempts to evaluate the literature of financial accounting in various aspects. The main focus of this paper is on the basics of accounting assessment, including capital costs, empirical alternative methods in accounting, and issues related to accounting theory. From the perspective of this research, is based on the scientific arguments of Kalen (2015), researchers conducted in these fields often are faced with a lack of critical arguments. Such a shortage will distort innovation in research and prevent the stability of academic research in the field of long-term financial accounting. The examples discussed in this paper include topics related to distorted models; more or less pricing based on evaluation models that prevent such phenomena; the integration of two heterogeneous models; one on the evaluation; and the other on the discount rate; the inability in understanding empirical constraints due to risk-free valuation models in capital cost estimation; using alternate variables for a multiple times that seem may lack any theoretical basis; and ultimately expanding complex models without considering the sensitivities that are required in the research subject.