Record Details

From instrumentalism to realism in accounting

Journal of Economic & Financial Studies

View Archive Info
 
 
Field Value
 
Title From instrumentalism to realism in accounting
 
Creator Enachi, Mihaela
Andone, Ioan I.
 
Subject Accounting; Regulation; Professional judgment in accounting
Accounting practices; economic substance; faithful representation; professional judgment; regulatory framework; relevance.
M40, M41, M48.
 
Description How, by their nature, the humans cannot have perfect knowledge, the only absolute thing is relativity, this being present in all their actions. In accounting, given its subject matter, it can talk of the relativity of the values that characterize the events in the life of an organization, this being caused by a wide variety of factors. In a previous article (Enachi, 2012) was identified a particular paradigm with visible effects in accounting practice, more precisely, it was talked about the transition from instrumentalism to realism in accounting. This paper supports the previous assertions and after explaining the accounting implications of the two fundamentally different approaches tries to provide solutions for bringing accounting closer to reality. A literature review is conducted to identify the limits that accounting presents in its attempt to capture the truth and the factors responsible for these limits. The main conclusion is that the quality of the professional judgments exercised in creating and implementing a system for accounting representation of reality, although partially controlled, is essential in increasing the reliability of the information provided by accounting.
 
Publisher LAR Center Press
 
Contributor —
 
Date 2015-08-26
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://journalofeconomics.org/index.php/site/article/view/117
10.18533/jefs.v3i03.117
 
Source Journal of Economic & Financial Studies; Vol 3, No 04 (2015): August; 68-72
2379-9471
2379-9463
 
Language eng
 
Relation http://journalofeconomics.org/index.php/site/article/view/117/205
 
Rights Copyright (c) 2015 Journal of Economic & Financial Studies
http://creativecommons.org/licenses/by-nc/4.0