2010
DOI: 10.1016/j.jacceco.2010.09.003
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Implications for GAAP from an analysis of positive research in accounting

Abstract: Based on extant literature, we review the positive theory of GAAP. The theory predicts that GAAP's principal focus is on control (performance measurement and stewardship) and that verifiability and conservatism are critical features of a GAAP shaped by market forces. We recognize the advantage of using fair values in circumstances where these are based on observable prices in liquid secondary markets, but caution against expanding fair values to financial reporting more generally. We conclude that rather than … Show more

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Cited by 583 publications
(478 citation statements)
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References 151 publications
(194 reference statements)
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“…Kothari et al (2010) claim that, in an extreme view, under a regulatory system based on principles, regulators define a range of principles and allow all interested parties to apply these principles in the specific economic contexts found. Conversely, in a system based on rules, regulators provide the same parties with detailed guides on how they should recognize, measure, and highlight the different economic contexts, minimizing the requirement to exert judgment by managers and other related parties.…”
Section: Standards Based On Rules or Principlesmentioning
confidence: 99%
See 2 more Smart Citations
“…Kothari et al (2010) claim that, in an extreme view, under a regulatory system based on principles, regulators define a range of principles and allow all interested parties to apply these principles in the specific economic contexts found. Conversely, in a system based on rules, regulators provide the same parties with detailed guides on how they should recognize, measure, and highlight the different economic contexts, minimizing the requirement to exert judgment by managers and other related parties.…”
Section: Standards Based On Rules or Principlesmentioning
confidence: 99%
“…According to Kothari et al (2010), the discretionary level of managers in the preparation of financial reports is related to the type of accounting standard to which they are subject. According to the authors, the debate between regulators of costs and benefits about allowing a greater amount of choices to determine accounting numbers is the foundation of discussion between standards based on rules or principles.…”
Section: Standards Based On Rules or Principlesmentioning
confidence: 99%
See 1 more Smart Citation
“…Por outro lado, os normativos contábeis também tratam das obrigações ambientais (ALCIATORE; DEE; EASTON, 2004;MCNICHOLS, 1994;NEGASH, 2012;ZUBER;BERRY, 1992) Neste contexto de evidenciação, quando a quantidade e qualidade das informações produzidas não são suficientes para comunicar, a assimetria informacional justifica a normatização da evidenciação nos relatórios financeiros (KOTHARI; RAMANNA; SKINNER, 2010). Dado que a regulação é vista como uma das formas de se remediar a insuficiência informacional (LEFTWICH, 1980), a evidenciação obrigatória, como no caso dos relatórios financeiros, pode apresentar diversos benefícios e ser socialmente desejável WYSOCKI, 2008).…”
Section: Lista De Abreviaturas E Siglasunclassified
“…A transferência de informações no mercado é cercada por ineficiências (AKERLOF, 1970;BEAVER, 1998;KOTHARI;RAMANNA;SKINNER, 2010;SCOTT, 2009) e a regulação da divulgação pode contribuir para a minimizar este problema. Para Kothari, Ramanna e Skinner (2010), as razões para se regular o disclosure se baseiam em suposições de falhas de mercado, como externalidades, assimetria de informação e preocupações sobre a imparcialidade no equilíbrio da informação gerada.…”
Section: Regulação Contábil 21unclassified