Financial reporting problems: solutions via reform

Article Abstract:

Innovation in financial reporting frequently causes problems because innovative solutions may seem to contradict standards. The new standards regime seeks to promote standardization and comparability across and within companies, and the financial information yielded by innovative solutions may seem problematic. Innovative solutions either introduce new contract or transaction types not covered by accounting standards or allow for the repackaging of transactions, which causes transactions to be treated in ways different from those delineated by accounting standards. The problems, which include recognition problems and problems of economic substance, have arisen due to the tendency of accounting standards to lag behind financial innovations.

Innovations, Corporation reports, Company reports

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Towards a system of inflation accounting

Article Abstract:

Accounting standards used to measure corporate profit, value corporate productive assets, and account for productive capacity are discussed, insofar as they are affected by inflation in Great Britain. Current cost accounting standards allow accountants to choose between the value concept of operating capacity and the volume concept of operating capacity. Accounting for fixed assets, stocks, monetary assets, working capital, and gearing adjustments are explained, and examples are used to illustrate accounting options considering inflationary influences on asset values.

Accounting and auditing, Inflation (Finance), Valuation, Assets (Accounting), Inflation (Economics), Great Britain

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Good stewardship and the ASB's objectives

Article Abstract:

Professor Michael Page's charge that the Accounting Standards Board (ASB) is neglecting its stewardship function is misguided. Contrary to Page's criticisms, the decision-usefulness approach adopted by the ASB is consistent with stewardship. It is the ASB's duty to make accounting information currently available clearer and more relevant so that the quality of economic decisions may be improved. Relevance and reliability are two attributes of accounting information required by the ASB.

Professional organizations, Criticism and interpretation, Accounting Standards Board, Powers and duties, Page, MIchael

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