The metaphysics of financial performance in financial accounting

Abstract This paper argues that the metaphysics of financial performance in conceptual framework employed by accounting standard-setters is incoherent: income and expenses cannot, as holds, both be independent elements statements, identified from underlying events, tested for recognition measured discrete acts, separately identification, testing measurement other satisfy analytical relationship between position embraced framework. An alternative conceptualisation proposed, under which are part a wider system classifying all changes assets liabilities, indirectly. approach improves metaphysical coherence, thus intellectual strength, project; while it leaves unchanged, emphasising importance classification, invites further attention to presentation performance, with potential improving usefulness disclosures.