Abstract
We have already seen that accounting does not possess a coherent conceptual framework, in the scientific sense of a consistent body of theory that ‘gives us the answers’. We have also seen that although accounting has a series of generally agreed conventions, they are not consistent within themselves. They cannot by themselves predict particular treatments nor explain particular treatments. This makes the interpretation of published accounts and information extremely difficult. Since the reader cannot assume that any particular approach has been used, he needs to be told precisely what has been done in order to arrive at particular figures. As the ASC say in a preface to SSAP 2:
It is fundamental to the understanding and interpretation of financial accounts that those who use them should be aware of the main assumptions on which they are based. The purpose of the Statement is to assist such understanding by promoting improvement in the quality of information disclosed.
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© 1990 D.J.A. Alexander
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Alexander, D. (1990). Disclosure of accounting policies (SSAP 2). In: Financial Reporting. Springer, Boston, MA. https://doi.org/10.1007/978-1-4899-7118-0_17
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DOI: https://doi.org/10.1007/978-1-4899-7118-0_17
Publisher Name: Springer, Boston, MA
Print ISBN: 978-0-412-35790-9
Online ISBN: 978-1-4899-7118-0
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