Search Swinburne Research Bank
Home List of Titles A basic user utility preference to reduce uncertainty: a dissent to reporting and asset measurement
Please use this identifier to cite or link to this item: http://hdl.handle.net/1959.3/54825
- A basic user utility preference to reduce uncertainty: a dissent to reporting and asset measurement
- Raar, Jean
- Legitimacy and self-regulation of the accounting profession dictates that it typifies integrity and credibility in both the form and substance of its accounting standards. Unsound and dishonest business practices are not evident in the financial reports, nor are they the responsibility of accounting standard setters. Nevertheless, professional accountability is not enhanced if the financial reporting standards permit a great deal of choices, variation and interpretation, particularly in asset values. In pursuit of professional legitimacy and the credibility, accounting standards can reduce opportunities for intruding bias, inept judgement, or interpretation perspectives adding to user uncertainties. The thesis of this conceptual paper is that key user groups have an intrinsic homogeneous preference utility for information relating to financial risk, which can be satisfied by a simple asset value, based on a market bid. The balance sheet can contain a segregation of asset values, either in supplementary or classification form.
- Publication type
- Journal article
- Critical Perspectives on Accounting Journal, Vol. 19, no. 5 (Jul 2008), pp. 785-804
- Publication year
- Accountability; Accounting standards; Asset value; Professional integrity; User utility preference
- Publisher URL
- Crown copyright © 2008. Published by Elsevier Ltd.
- Peer reviewed