• Bài trích
  • On the conceptual foundations of financial reporting/

Tác giả CN Dichev, Ilia D
Nhan đề On the conceptual foundations of financial reporting/Ilia D. Dichev
Thông tin xuất bản 2017.
Mô tả vật lý p. 617 - 632.
Tóm tắt Standard setters advocate a balance sheet approach to financial reporting, which views assets and liabilities as primary, and income as just the derivative change in net assets. This paper argues that income is conceptually and practically better described as ‘adjusted net cash flows,’ where the adjustments are the accounting accruals. One proof of that is seen in the existence of whole accounting systems like tax accounting and national income accounting, which emphasize the determination of income but have no balance sheets. The paper also argues that an income-based approach to financial reporting is by nature better suited to reflect the success of advancing cash to earn more cash, which defines what for-profit entities do. There are two main features of the income-based approach. One is attention on the cash flows as the natural foundation for financial reporting because they are precisely determined, and provide a clear link to firm valuation. The other is attention on the accounting accruals, which serve to adjust the raw cash flows to better show the current success of investing cash to ultimately earn more cash. Specifically, the paper argues for revenue recognition which is close to current practice, and for expense recognition which is aligned with the matching principle.
Thuật ngữ không kiểm soát Balance Sheet Model
Thuật ngữ không kiểm soát Conceptual foundations
Thuật ngữ không kiểm soát Income Statement Model
Thuật ngữ không kiểm soát Standard setting
Nguồn trích Accounting and Business Research- vol.47, no. 6/2017
000 00000nab a2200000 a 4500
00150704
0022
00461487
005202007101634
008171011s2017 enk a 000 0 eng d
0091 0
035|a1456369691
039|a20241125210415|bidtocn|c20200710163436|dhuongnt|y20171011160646|zsvtt
0410 |aeng
044|aenk
1001 |aDichev, Ilia D
24510|aOn the conceptual foundations of financial reporting/|cIlia D. Dichev
260|c2017.
300|ap. 617 - 632.
520|aStandard setters advocate a balance sheet approach to financial reporting, which views assets and liabilities as primary, and income as just the derivative change in net assets. This paper argues that income is conceptually and practically better described as ‘adjusted net cash flows,’ where the adjustments are the accounting accruals. One proof of that is seen in the existence of whole accounting systems like tax accounting and national income accounting, which emphasize the determination of income but have no balance sheets. The paper also argues that an income-based approach to financial reporting is by nature better suited to reflect the success of advancing cash to earn more cash, which defines what for-profit entities do. There are two main features of the income-based approach. One is attention on the cash flows as the natural foundation for financial reporting because they are precisely determined, and provide a clear link to firm valuation. The other is attention on the accounting accruals, which serve to adjust the raw cash flows to better show the current success of investing cash to ultimately earn more cash. Specifically, the paper argues for revenue recognition which is close to current practice, and for expense recognition which is aligned with the matching principle.
6530 |aBalance Sheet Model
6530 |aConceptual foundations
6530 |aIncome Statement Model
6530 |aStandard setting
773|tAccounting and Business Research|gvol.47, no. 6/2017
890|a0|b0|c0|d0

Không có liên kết tài liệu số nào