ABSTRACT
Beaver's "revolution" seeks to overthrow the existing notion that "performance measurement" through "earnings reports," whether based on current value or historical cost accounting should be the principal goal of accounting, and to establish in its place an "information approach" which would better emphasize investor needs relating to future firm dividends. Beaver seems to see no difference between historical cost and current value measures of performance, although in fact almost ail his specific criticisms of accounting "performance measures" are geared to "accrual accounting" in words—to "arbitrary allocation accounting". Perhaps a true 'missing link' in accounting may yet have to be fashioned linking Beaver's and others' legitimate interests in prediction with market evaluations of those predictions à la current value accounting. And this 'composite' of individual expectations about the future can in some way be used to fashion 'accounting information' useful for prediction, hence decision-making.
