Behavioural Accounting: Adding Behavioral Aspect to Financial Accounting

Abstract

Behavioural accounting owes its existence due to limitation of financial accounting. It incorporates human behaviour into financial accounting system. Its focus is on how human behavior affects and is affected by the accounting system and other financial decisions. The human behavior, accounting system, and organization structure are the important constituents of this discipline. It provides insights into the actual decision making processes in the organization. Behavioral accounting is much wider concept than merely valuation of human resource.