The Trueblood Study Group on the Objectives of Financial Statements (1971-73): A Historical Study

55 Pages Posted: 25 Aug 2014

See all articles by Stephen A. Zeff

Stephen A. Zeff

Rice University - Jesse H. Jones Graduate School of Business

Date Written: August 23, 2014

Abstract

This paper examines the background and work of the AICPA’s Accounting Objectives Study Group, chaired by Robert M. Trueblood, which issued its important report in October 1973. In particular, the research is informed by interviews with three members of the Study Group and with four of the principal members of its research staff. Evidence is presented on the members of the Study Group who supported, or did not support, various positions in the report, including their apparent reasons, as well on the influential role of the staff in shaping the report. The conclusion is that the full-time staff, abetted by the financial analyst member of the Study Group, played the key role in driving the thrust of the final report, which recommended that financial statements should provide users with information about the cash-generating ability of the enterprise, and eventually the cash flow to the users themselves. This recommendation resonated with the FASB and with standard setters around the world.

Keywords: objectives, financial statements, financial reporting

JEL Classification: M41

Suggested Citation

Zeff, Stephen A., The Trueblood Study Group on the Objectives of Financial Statements (1971-73): A Historical Study (August 23, 2014). Available at SSRN: https://ssrn.com/abstract=2485887 or http://dx.doi.org/10.2139/ssrn.2485887

Stephen A. Zeff (Contact Author)

Rice University - Jesse H. Jones Graduate School of Business ( email )

6100 South Main Street
P.O. Box 1892
Houston, TX 77005
United States
713-348-6066 (Phone)
713-348-6296 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
272
rank
109,965
Abstract Views
1,834
PlumX Metrics
!

Under construction: SSRN citations while be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information