Publication Date

1-1-1994

Document Type

Dissertation/Thesis

First Advisor

Delaney, Patrick R.

Degree Name

B.S. (Bachelor of Science)

Department

Department of Accountancy

Abstract

The Financial Accounting Standards Board has issued Statements of Financial Accounting Concepts to provide the objectives which financial reporting should comply with. As the economic environment and markets have changed, there has been some controversy over whether historical cost information complies with these objectives. This paper reviews the objectives and comes to the conclusion that historical cost is satisfactory for the present, but a change will probably be needed in the future. Several alternatives are discussed and a gradual change to a valuation basis is recommended. User and preparer opinions are discussed and the recommendations take into account their opposition to change. The main conclusion of the paper is that SFAC 1 basically says that financial reporting should provide users with the information they need and want. Historical cost information seems to be satisfactory now, but a move to supplemental information is also considered positive. Any change occurring in financial reporting will have to be implemented slowly and build on what users already understand.

Extent

16 pages

Language

eng

Publisher

Northern Illinois University

Rights Statement

In Copyright

Rights Statement 2

NIU theses are protected by copyright. They may be viewed from Huskie Commons for any purpose, but reproduction or distribution in any format is prohibited without the written permission of the authors.

Media Type

Text

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