When international accounting standards were renamed to become international financial reporting standards, this seemed to imply that accounting no longer needed to exist, but rather had to be reconsidered as a part of financial communication and advertising. Does traditional accountability no longer matter? Betrayed investors and globalized stakeholders would dissent. A difference of nature co...

This paper studies accrual accounting and equity valuation in the context of a firm that makes repeated and overlapping investments in productive capacity. The analysis identifies a particular accrual accounting (depreciation) rule which is termed replacement cost accounting because the book value of existing capacity assets is set equal to the value that such assets would have if a competitive...

In this paper, we analyze the social value of accounting objectivity in maintaining bank stability. Building on an early, in‡uential accounting work by Ijiri and Jaedicke (1966), we operationalize two informational properties, objectivity and accuracy, in a correlated information structure and embedded them into a model of bank runs. We show that, when compared with the accuracy property, the o...

During the past five years, the number of US. citizens who own foreign securities has increased by thirty percent. This trend has led to the need for a uniform accounting system that would increase the comparability and consistency of financial statements across countries in the world Today, over I 00 countries have adopted International Financial Reporting Standards (!FRS) as their primary acc...

the rule of necessity to respect the principle of good faith in performance of the contract is the result of :union: rights and ethics. good faith in performance of the contract with subjective and objective criteria and using cost-benefit analysis, wealth maximization, game theory, efficiency and welfare standards, leading to the achievement of the objectives set by the parties of contract. la...