Financial accounting reform: the need for a 'back to basics' approach for profit measurement and wealth measurement

John B. Ryan

International Journal of Economics and Accounting, 2014, vol. 5, issue 1, 1-50

Abstract: By recognising the dual purposes of financial accounting, and developing distinct theories to guide the preparation of financial reports, the apparent internal contradictions in accounting theory can be resolved. Property rights and measurement theory provide the basis for explaining transaction-based profit measurement and funds commitment, and for a statement of wealth measured using market prices. Property rights are recognised in The New Institutional Economics. Going beyond accepted accounting conventions, property rights provide the qualitative, empirical property giving meaning to accounting practice for profit measurement through the 1940s to 1960s. Examples of profit and of wealth measurement are included.

Keywords: financial accounting theory; postulates; principles; property rights; qualitative empirical property; realisation; cost allocation; recoverable cost; wealth measurement; contracts; measurement theory; monetary profit measurement; accounting reform. (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.inderscience.com/link.php?id=60915 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijecac:v:5:y:2014:i:1:p:1-50

Access Statistics for this article

More articles in International Journal of Economics and Accounting from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().