|
|
|
|
||||
|
||||
Implications for GAAP from an Analysis of Positive Research in AccountingS.P. KothariMassachusetts Institute of Technology (MIT) - Sloan School of Management Karthik RamannaHarvard University - Harvard Business School Douglas J. SkinnerThe University of Chicago - Booth School of Business September 13, 2010 Journal of Accounting & Economics (JAE), Forthcoming MIT Sloan Research Paper No. 4740-09 Harvard Business School Accounting & Management Unit Working Paper No. 09-137 University of Chicago - Booth School of Business Working Paper No. 09-22 Abstract: Based on extant literature, we review the positive theory of GAAP. The theory predicts that GAAP’s principal focus is on control (performance measurement and stewardship) and that verifiability and conservatism are critical features of a GAAP shaped by market forces. We recognize the advantage of using fair values in circumstances where these are based on observable prices in liquid secondary markets, but caution against expanding fair values to financial reporting more generally. We conclude that rather than converging U.S. GAAP with IFRS, competition between the FASB and the IASB would allow GAAP to better respond to market forces.
Number of Pages in PDF File: 126 JEL Classification: M41, M44, M47 Accepted Paper SeriesDate posted: June 3, 2009 ; Last revised: September 17, 2010Suggested CitationContact Information
|
|
|||||||||||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo8 in 0.532 seconds
