Some Conceptual Tensions in Financial Reporting(2011)
We examine four key conceptual tensions that are at the heart of many financial reporting dilemmas: stocks vs. flows, ex-ante vs. ex post, conventions vs. economic substance, and topdown design vs. bottom-up evolution as sources of accounting practice. Associated with each of these conceptual dimensions is an accounting duality; in some cases one side (e.g., stocks) is easier to measure in a reliable manner, while the other side (e.g., flows) is easier to measure in other instances. We suggest that financial reporting would benefit from a willingness to pay attention to, and find compromise between both sides of these tensions; forcing a choice of one over the other does not serve to improve financial reporting.
- Conceptual tensions,
- ex ante-ex post,
- Conventions-economic features,
Publication DateSeptember 15, 2011
Citation InformationYuri Biondi, Jonathan Glover, Karim Jamal, James Ohlson, et al.. "Some Conceptual Tensions in Financial Reporting" (2011)
Available at: http://works.bepress.com/shyam-sunder/415/