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Some Conceptual Tensions In Financial Reporting, Yuri Biondi, Karim Jamal, James Ohlson, Stephen Penman, Eiko Tsujiyama, Shyam Sunder
Some Conceptual Tensions In Financial Reporting, Yuri Biondi, Karim Jamal, James Ohlson, Stephen Penman, Eiko Tsujiyama, Shyam Sunder
Shyam Sunder
We examine four key conceptual tensions that are at the heart of many financial reporting dilemmas: stocks versus flows, ex ante versus ex post, conventions versus economic substance, and top-down design versus 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 …
Some Conceptual Tensions In Financial Reporting, Yuri Biondi, Jonathan Glover, Karim Jamal, James Ohlson, Stephen Penman, Shyam Sunder, Eiko Tsujiyama
Some Conceptual Tensions In Financial Reporting, Yuri Biondi, Jonathan Glover, Karim Jamal, James Ohlson, Stephen Penman, Shyam Sunder, Eiko Tsujiyama
Shyam Sunder
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; …