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The Problems of Accounting Standards
Author(s) -
Myddelton D. R.
Publication year - 2012
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/j.1468-0270.2012.02173.x
Subject(s) - accounting , stewardship (theology) , business , accounting standard , financial accounting , management accounting , accounting information system , political science , law , politics
The main purpose of company accounts is stewardship, so accounting standards based on ‘decision‐usefulness for investors’ are misconceived. And making the standards compulsory ‘Instructions’ rather than voluntary ‘Suggestions’ causes many additional problems. All we really need is the Companies Act requirement for accounts to show ‘a true and fair view’.