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MEASUREMENT/VALUATION‐RELATED INTERPRETATIONS OF FUNDAMENTAL ACCOUNTING CONCEPTS
Author(s) -
Vickrey Don W.
Publication year - 1994
Publication title -
journal of business finance and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.282
H-Index - 77
eISSN - 1468-5957
pISSN - 0306-686X
DOI - 10.1111/j.1468-5957.1994.tb00366.x
Subject(s) - valuation (finance) , historical cost , fair value , economics , accounting information system , cost accounting , market value , accounting , income approach , residual income valuation , actuarial science , equity risk
The goal of this article is to perform a necessary step in reconciling the measurement/valuation and information‐economics perspectives on accounting information. Thus, it identifies the financial‐accounting systems that can be interpreted using the language of measurement/valuation ‐ the current‐exit‐value system and a reformulated version of the current‐replacement‐cost system. In accomplishing its objective, the article provides, as far as possible, measure‐mendvaluation‐related interpretations of the concepts which logically are fundamental with respect to the current‐exit‐value, current‐replacement‐cost, and historical‐cost systems. The concepts that are considered for interpretation are total assets, total liabilities, total capital, capital maintenance, net income, and financial position.