Theory and practice of financial reporting are typically centered on the notion of income measurement. In this article, the authors adopt a fundamental measurement perspective. Income measurement is then argued to exist in a world of complete and perfect markets, but not necessarily otherwise. Hence, at a fundamental level the central feature of financial reporting cannot be income measurement. The writers then offer a reinterpretation of income reporting and accrual notions in terms of a "cost-effective" communication procedure.
%0 Journal Article
%1 beaver1979nature
%A Beaver, William H.
%A Demski, Joel S.
%D 1979
%I American Accounting Association
%J The Accounting Review
%K socdes
%N 1
%P 38-46
%T The Nature of Income Measurement
%U http://www.jstor.org/stable/246232
%V 54
%X Theory and practice of financial reporting are typically centered on the notion of income measurement. In this article, the authors adopt a fundamental measurement perspective. Income measurement is then argued to exist in a world of complete and perfect markets, but not necessarily otherwise. Hence, at a fundamental level the central feature of financial reporting cannot be income measurement. The writers then offer a reinterpretation of income reporting and accrual notions in terms of a "cost-effective" communication procedure.
@article{beaver1979nature,
abstract = {Theory and practice of financial reporting are typically centered on the notion of income measurement. In this article, the authors adopt a fundamental measurement perspective. Income measurement is then argued to exist in a world of complete and perfect markets, but not necessarily otherwise. Hence, at a fundamental level the central feature of financial reporting cannot be income measurement. The writers then offer a reinterpretation of income reporting and accrual notions in terms of a "cost-effective" communication procedure.},
added-at = {2017-11-27T15:30:32.000+0100},
author = {Beaver, William H. and Demski, Joel S.},
biburl = {https://www.bibsonomy.org/bibtex/2cf1a2c58928fad8d413b1186039bd0f5/dirtyhawk},
interhash = {78e47269426d50e0c5f806723517952b},
intrahash = {cf1a2c58928fad8d413b1186039bd0f5},
issn = {00014826},
journal = {The Accounting Review},
keywords = {socdes},
number = 1,
pages = {38-46},
publisher = {American Accounting Association},
timestamp = {2018-09-19T18:10:30.000+0200},
title = {The Nature of Income Measurement},
url = {http://www.jstor.org/stable/246232},
urldate = {2017-11-27},
volume = 54,
year = 1979
}