The Usefulness of the Asset-Liability View

The Finanical Accounting Standards Board (FASB) in
the US initiated in 1973 a conceptual framework for
financial reporting project. The International
Accounting Standards Committee (IASC) issued a
similar framework in 1989. The conceptual framworks
was a response to a general demand for cohesive
accounting theory and a vehicle for setting
conceptually consistent accounting standards. To
reach this objective, the FASB and the IASB believed
that the asset-liability view would be a better
basis than the the traditional revenue-expense
approach. In the book, the author explores the
conceptual differences between the two views,
whether the asset-liability view is in fact useful
in standard setting, and whether the asset-liability
view is a better basis for providing decision useful
information to the users of financial reports.

Autorentext

Steinar Sars Kvifte is Technical Partner in Ernst & Young Norway and Associate Professor at the Norwegian School of Economics and Business Administration. This book is his PhD dissertation approved in 2004.

Klappentext

The Finanical Accounting Standards Board (FASB) in the US initiated in 1973 a conceptual framework for financial reporting project. The International Accounting Standards Committee (IASC) issued a similar framework in 1989. The conceptual framworks was a response to a general demand for cohesive accounting theory and a vehicle for setting conceptually consistent accounting standards. To reach this objective, the FASB and the IASB believed that the asset-liability view would be a better basis than the the traditional revenue-expense approach. In the book, the author explores the conceptual differences between the two views, whether the asset-liability view is in fact useful in standard setting, and whether the asset-liability view is a better basis for providing decision useful information to the users of financial reports.