Accounting conventions: Do they cause economic instability and corporate failure?

Article Abstract:

The value of capital in a firm should be maintained intact. Accounting conventions are a passive representation of a company's financial position. Accounting conventions also actively influence decision-making by the firm, which affects the financial viability of the firm and the economy as a whole. The conventions of accounting for inflation could erode a company's asset base, especially in the industrial sector. Accounting standards and practices related to accounting for inflation are examined as they affect business decisions and economic realities. Keynes attributed accounting calculations as being partially responsible for "intensifying the up and down swings in the economy" as long ago as 1936. Much attention has been given to the effects of inflation on accounting, but little investigation has been performed to quantify the effects of accounting practices on inflation.

Standards, Analysis, Economic aspects, Tax accounting, Inflation (Finance), Economic forecasting, Bankruptcy, Managerial accounting, Inflation (Economics)

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The accountant and the intelligent machine

Article Abstract:

Advances in artificial intelligence (AI) are resulting in further integration with and control of conventional systems, drawing accountants deeper into the technological world. There is the potential for both opportunity and risk in further AI developments, with some critics suggesting that money spent on AI applications would be better applied to solving the world's problems. It might be pointless to try to create artificially what already exists in abundance: human intelligence. Others note that AI work has already contributed insights into the way humans might think, and provided impressive practical applications of machine intelligence. Air traffic control, worldwide communication systems, nuclear power plant management, natural resources exploration, defense systems, and medical diagnostics already depend on advanced types of AI.

Technology application

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The machine intelligence family

Article Abstract:

The development of artificial intelligence and its potential effects on accountants are discussed. The disciplines of operational research, behavioral science, data base management, logic, and language have all contributed to the development of expert systems. The Fifth and Sixth Generation programs of the Japanese and the Alvey Programme on artificial intelligence technology in the United Kingdom are described.

Usage, Innovations, Expert systems, Great Britain

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