Concepts‐based Accounting Standards.

While comparability across firms and consistency over time are generally held to be fundamental goals of financial reporting, I provide an analytic representation of a concept that explains why concepts‐based accounting standards cannot assure comparability and why their induced consistency may not...

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Publicado en:Abacus Vol. 58; no. 2; pp. 209 - 233
Formato: Artículo
Publicado: Wiley-Blackwell Jun2022
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Concepts‐based Accounting Standards.
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      su:
        Accounting standards
        International Financial Reporting Standards
        Cognitive science
        Financial statements
        Machine learning
      sug:
        subj:
          Accounting standards
          International Financial Reporting Standards
          Cognitive science
          Financial statements
          Machine learning
      keyword:
        Comparability
        Concepts‐based standards
        Consistency
        Hysteresis
        S‐curve
        Vagueness
      ab: While comparability across firms and consistency over time are generally held to be fundamental goals of financial reporting, I provide an analytic representation of a concept that explains why concepts‐based accounting standards cannot assure comparability and why their induced consistency may not always be desirable. While the term 'concepts‐based accounting standards' has not caught on in the academic and professional literatures, its use here emphasizes the foundational role that language‐based concepts play in constructing accounting standards. I appeal to the academic literature in machine learning, neural networks, and especially cognitive science—all of which may represent concepts by S‐curve (sigmoid) signatures. I then show how S‐curves can explain an accounting standard's (1) precision, (2) comparability across firms, (3) demands placed on judgement, and (4) consistency across time. Accordingly, an S‐curve formulation may guide both analytical modelling of accounting standards and add structure to empirical research designs.
      pubtype: Academic Journal
      doctype: Article
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    language: English
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