Debits & Credits: A Return to Basics

The primary objective of good accounting is that it be useful. Accountants should develop a conceptual framework upon which accounting principles and opinion can rest. Through such a framework, the profession can develop a preventive approach rather than a remedial one. One of the major goals of the...

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Bibliographic Details
Published in:The National public accountant (1957) 1990-12, Vol.35 (12), p.12
Main Authors: Tocco, Anthony L, Vierling, Christina L
Format: Article
Language:English
Subjects:
Accounting
Accounting procedures
Accounting standards
FASB statements
Financial reporting
Financial statements
Income taxes
Online Access:Get full text
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Summary:The primary objective of good accounting is that it be useful. Accountants should develop a conceptual framework upon which accounting principles and opinion can rest. Through such a framework, the profession can develop a preventive approach rather than a remedial one. One of the major goals of the Financial Accounting Standards Board at its inception was the development of a conceptual framework. The project remains incomplete in part because of controversy over whether to adopt a prescriptive or descriptive approach. The prescriptive approach would set theoretical guides that establish what ought to be reflected in financial statements. The descriptive approach entails developing standards by studying and summarizing current practice. The profession must address the conceptual framework project and change from the descriptive to the prescriptive approach for standard setting. The alternative is the increased threat of regulation.
ISSN:0027-9978