ABSTRACT

Following a spate of high-profile financial scandals (including Enron, WorldCom, and Parmalat), the quality of financial information has come under increasing scrutiny. Many of the accounting standards being imposed on the profession by regulators and standard-setting bodies are now attracting criticism from the business community and the accountancy profession itself.

In this book, Anthony Rayman traces a fundamental flaw in the conventional academic wisdom back to the nineteenth century, and proposes an alternative conceptual framework. He argues that effective corporate governance can be achieved, not by expensive and counterproductive regulations (like the US Sarbanes-Oxley Act and some International Accounting Standards), but by an enhanced accounting information system that exposes corporate management to the full rigour of market forces.

chapter |10 pages

Introduction

part I|23 pages

The noble art of counting beans

chapter 1|6 pages

Stewardship reporting

The physical dimension

chapter 2|7 pages

Business accounting

chapter 3|8 pages

Performance reporting

The value dimension

part II|30 pages

The measurement of income and value

chapter 4|8 pages

Economic income and accounting profit

chapter 5|8 pages

The inflation accounting ‘debate'

chapter 6|12 pages

Historical cost or current value?

part III|37 pages

A theoretical blind alley *

chapter 7|11 pages

Value change

A wrong turning?

chapter 8|9 pages

Asset valuation

A convenient distraction?

chapter 9|15 pages

Fair value accounting

A dead end?

part IV|35 pages

Back to basics

chapter 10|7 pages

What's wrong with investment theory?

chapter 11|8 pages

The ‘threshold of measurement'

chapter 12|6 pages

The fatal conceit of managerial capitalism

chapter 13|12 pages

What's wrong with accounting standards?

part V|37 pages

The segregation of funds and value

chapter 16|10 pages

Management and the auditor

A question of public accountability

part VI|20 pages

Truth in accounting

chapter 17|5 pages

Elimination of the expectation gap

chapter 18|6 pages

Reconstruction of the conceptual framework

chapter 19|7 pages

Accounting truth and economic reality