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Inconsistency in U.S. Accounting Standards: The Treatment of Interest
Author(s) -
FETTERS MICHAEL L.,
LIVINGSTONE JOHN LESLIE
Publication year - 1989
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.1467-6281.1989.tb00225.x
Subject(s) - accounting , consistency (knowledge bases) , accounting standard , business , financial accounting , accounting information system , actuarial science , computer science , artificial intelligence
Consistency is an essential part of financial reporting: it applies both to the continuous use of the same accounting principles by an entity from period to period, and to consistency between various accounting principles used by the same entity. In the development of accounting standards, risks to users of inconsistencies can be reduced by good disclosure requirements, particularly so between various pronouncements. A study examining the treatment of interest found inconsistencies in two‐thirds of the relevant U.S. GAAP pronouncements.