ABSTRACT
Proposals to up-date measurements of liabilities encounter similar resistance. For the sake of convenience of expression, the liability issue often is ignored in this chapter, but it is included in the subject. In colloquial terms, the argument is between historical cost and current value. The term “value” could be omitted in stating the issue, but since many of the combatants see a battle between cost and value, use of the term “value” may help to communicate the essence of the argument. The opposite of value accounting is valueless accounting, so those terms are used to apply to both assets and liabilities in preference to the awkward expressions “current measurements accounting” and “old measurements accounting.”Social scientists are accustomed to seeking reasons for what exists – to searching for explanations. In an uncertain world, managements cannot have perfect control over reported earnings; they are affected by many unpredictable and uncontrollable events, many of which hurt earnings.
