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A Financial Reporting Model for Dependent Market Economies
Author(s) -
MENSAH YAW M.
Publication year - 1981
Publication title -
abacus
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.632
H-Index - 45
eISSN - 1467-6281
pISSN - 0001-3072
DOI - 10.1111/j.1467-6281.1981.tb00107.x
Subject(s) - developing country , comprehensive income , financial statement , economics , measure (data warehouse) , financial market , income statement , business , finance , monetary economics , macroeconomics , public economics , accounting , gross income , economic growth , balance sheet , audit , database , computer science , tax reform , state income tax
This paper attempts to assess the extent to which the conventional income statement fulfils the information needs of the investor in developing countries. Evidence of imperfections in the market in these countries is examined, and it is demonstrated that the conventional income measure does not necessarily permit an assessment of the economic efficiency of enterprises in developing countries. An alternative measure based on the dichotomization of reported income into income due io protection and income at world prices is presented and defended as a suitable model for financial reporting in these countries.