Really Rethinking Financial Reporting: A Discussion of Rethinking Financial Reporting: Standards, Norms and Institutions by Shyam Sunder

Williams Paul F. ()
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Williams Paul F.: Department of Accounting, North Carolina State University, Raleigh, NC27695, USA

Accounting, Economics, and Law: A Convivium, 2019, vol. 9, issue 2, 7

Abstract: Professor Sunder’s book raises significant issues about the state of financial reporting, particularly his concern at the proliferation of complex rules for which there are only questionable justifications. In this review essay issue is taken not that there isn’t a problem with current financial reporting, but with the unexamined premise about the nature of that problem and the role that accounting and auditing play in the regulation of the modern, powerful corporation. It is argued that rules are the logical consequence of a competitive order and that resorting to norms as an alternative to rules or standards promises no better alternative unless there is a critical examination of who is to be the community to which norms apply. Thus, it is crucial to question the premise of decision usefulness as the underlying purpose of accounting vis-a-vis the publicly traded corporation. I argue that re-considering the historical norms of accounting that are based on the premise that holding corporations accountable, is crucial to really rethinking financial reporting.

Keywords: financial reporting; norms; accountability (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1515/ael-2017-0062

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Accounting, Economics, and Law: A Convivium is currently edited by Reuven S. Avi-Yonah, Yuri Biondi and Shyam Sunder

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