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1. Lack of Prescription - It does not provide prescription and does not provide a means of improving accounting practice. 2. Positive accounting theory is not value-free as it asserts assumption that all action is driven by self-interest. 3. Invalid Assumptions - It relates to the fundamental assumption that all actions are driven by a desire to maximize one's wealth. To many researchers such an assumption represents a far too negative and simplistic perspective of humankind. 4. Stagnation ± Lack of Development - Since the general inception of positive accounting theory in the 1970s the issues being addressed have not shown great development. 5. Individual choices vs. Many choices Much of the research within Positive Accounting Theory considers individual accounting choices when in practice; the organization will have a vast number of accounting choices, many of which might have opposing effects on financial performance and position. 6. The measurements or proxies being used within the literature are often far too simplistic. 7. Positive Accounting Theory is scientifically flawed. 8. Lack of Universality of the Conclusions In undertaking large-scale empirical research, positive researchers ignore many organization-specific relationships.