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Multiple Dimensions of Accounting in the Development of GAAP
Author(s) -
STAUNTON J. J.
Publication year - 2008
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.1467-6281.2007.00251.x
Subject(s) - accounting , argument (complex analysis) , accounting standard , scrutiny , phrase , financial accounting , set (abstract data type) , mark to market accounting , accounting information system , economics , positive economics , business , law and economics , political science , law , computer science , biochemistry , chemistry , artificial intelligence , programming language
The phrase ‘accepted accounting principles’ underlying financial statements is a forerunner of today's accounting standards. Here, it is argued that history shows that the term ‘principles’ is often most vague in debates on the development of those standards. The reasons for and consequences of that vague use are varied and complex. This article provides insights not highlighted in earlier analyses of the periods reviewed. While debates like the rule‐ versus principle‐based standards are set up as two‐dimensional, the many dimensions of accounting often allow argument to be easily diverted. The debate/argument thus remains unresolved. For progress to be achieved in the establishment of accounting standards the many dimensions of accounting must be acknowledged and attempts to divert debate minimized. Those with a stake in the development of accounting standards need to consider the total scene of the related accounting. In a particular debate, dimensions under scrutiny must be stated, with any others in that total scene being acknowledged even if kept constant.