Posted: 19 Apr 2000
In my short lifetime, just the last 60 years of the millennium now ending, Homo sapiens has harnessed atomic energy for peaceful and not so peaceful means, built computers that at first occupied whole buildings and then began shrinking them to miniscule proportions, landed on Earth?s moon and soon after began scouring the depths of outer space for evidence of other life forms, and launched the human genome project, in a voyage of self-discovery of a different kind. Knowledge is exploding in a chain reaction facilitated by new ways of organising and communicating information to others. Accounting inevitably will be bound up in this information revolution.
So what are the main drivers of financial accounting change as we enter the next millennium? Here are two: figuratively, our world is compressing rapidly in time and space; and knowledge per se is playing an increasing role in the world economy. What will they mean for our discipline as we know it today? They will mean two things, in particular: the role of periodic reports will be progressively usurped by continuous disclosures; and commercial history will become less relevant to financial markets than future prospects, or forward looking disclosures as they are often called.
JEL Classification: M41, M45, G12
Suggested Citation: Suggested Citation