Collective intentionality and aggressive earnings management: Developing Norman Macintosh's arguments in the debate over principles- versus rules-based accounting standards

Noriaki Okamoto

CRITICAL PERSPECTIVES ON ACCOUNTING, 2011, vol. 22, issue 2, 236-242

Abstract: The purpose of this paper is two-fold. First, the author considers Norman Macintosh's recent arguments regarding the “bullshit” prevalent in accounting, and explicates the crux of problems raised in disputes concerning corporate aggressive earnings management. Second, the author suggests a theoretical and institutional framework to reconcile the disputes by applying implications from the Searlean theory of collective intentionality. To these ends, this paper draws mainly on related philosophical investigations, and attempts to shed new light on the present debate over principles- versus rules-based accounting standards and aggressive earnings management. Based on a theoretical analysis, this paper concludes by supporting principles-based accounting standards accompanied by the true and fair override provisions.

Keywords: Collective intentionality; Reality in accounting; Aggressive earnings management; Principles-based accounting standards; True and fair override (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:crpeac:v:22:y:2011:i:2:p:236-242

DOI: 10.1016/j.cpa.2010.06.012

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