haku: @all fair value / yhteensä: 87
viite: 28 / 87
| Tekijä: | Rayman, R.A. |
| Otsikko: | Fair value accounting and the present value fallacy: The need for an alternative conceptual framework |
| Lehti: | British Accounting Review
2007 : SEP, VOL. 39:3, p. 211-225 |
| Asiasana: | accounting financial reporting funds valuation incomes theories |
| Kieli: | eng |
| Tiivistelmä: | The major functions of company accounting (by the IASB and the FASB) are: 1. reporting (here as: rptg.) on 'the custody and safekeeping' of the company's resources and 2. rptg. on 'their efficient and profitable use'. The joint IASB/FASB project for improving the conceptual framework for financial rptg. is directed towards better performance of both functions within the conventional 'accrual' system of accounting through the use of 'fair value' (as: f-vl./f-vls.) Although the disclosure of f-vls. is a welcomed development, the requirement that changes in f-v. should be reported as 'gains' or 'losses' seems to rely on the 'Hicksian' concept of income. This paper aims at establishing that this concept is fundamentally flawed by what may be called the 'present value fallacy'. Even in an economic utopia of perfectly competitive markets, the concept of income or profit as value growth can be seriously misleading etc. |
SCIMA