Journal of Applied Business Research, Vol.13, No.1, pp. 69-82, Summer 1996/1997
22 Pages Posted: 15 Apr 2005
This paper addresses two problematic issues arising from the importation of terms into financial accounting: (1) the nature of economic reality; and (2) the role of assumptions. These two issues have stirred a lot of controversy relating to financial accounting measurements and affect attestation reports. This paper attempts to provide conceptual clarity on these two issues.
Keywords: Economic reality, audit opinion, Savings and Loan Associations, aggregative analysis, planning data, simplifying assumptions, going concern, liquidating concern, realization
JEL Classification: M41, D21
Suggested Citation: Suggested Citation
Salvary, Stanley C.W., Some Conceptions and Misconceptions on Reality and Assumptions in Financial Accounting. Journal of Applied Business Research, Vol.13, No.1, pp. 69-82, Summer 1996/1997. Available at SSRN: https://ssrn.com/abstract=689263