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The Fasb Approach To Income Determination: Is It Viable?, Gail B. Wright, Francis A. Bird
The Fasb Approach To Income Determination: Is It Viable?, Gail B. Wright, Francis A. Bird
Robins School of Business White Paper Series, 1980-2022
A question which has been debated by the accounting profession for decades is whether there exists a single set of correct rules for use in reporting 'true income' which would enable comparability in reporting for all firms to be achieved. Those who believe a 'true income' figure does exist, advance their position by attempting to reduce choices among alternatives.
Not infrequently the debate centers around the matching principle, i.e., the timing of recognition of an expense. Accounting has its basis in the accrual system. It does not necessarily convey cash inflows and outflows of the current period so much as …