Unreliable accounts: How regulators fabricate conceptual narratives to diffuse criticism – A response to Karthik Ramanna
-
Colin Haslam
Abstract
Karthik Ramanna’s article titled “unreliable accounts: How regulators fabricate conceptual narratives to diffuse criticism” provides a critical insight into how Fair Value Accounting (FVA) was incorporated into the conceptual framework for general purpose financial reporting. Karthik reveals that the installation of FVA into the FASBs constitution can be understood through a framework: conceptual veiling. In this framework, the FASB is captured within the logics of financial market economics, assuming investors and capital market actors are best served by financial disclosures that reflect market valuations. Captured by these interests, the FASB needed to modify the narratives contained in the conceptual framework removing reliability and substituting faithful representation because much of what constitutes FVA disclosures are estimates and judgements of questionable reliability. A more forceful critical evaluation of the re-orientation of accounting practise from Historical Cost Accounting to FVA might have located changes in the context of the financialized company.
References
Chartered Financial Analysts Institute (2020). Invitation to comment (ITC) identifiable intangible assets and subsequent accounting for goodwill. Retrieved from https://www.cfainstitute.org/-/media/documents/comment-letter/2020-2024/20200113.ashx.Suche in Google Scholar
Financial Accounting Standards Board (FASB) (2000). Statement of financial accounting, concepts no. 7 page 10. Using cash flow information and present value in accounting measurements. Retrieved from https://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1218220132860&acceptedDisclaimer=true.Suche in Google Scholar
Financial Accounting Standards Board (FASB) (2010). Statement of financial accounting concepts No. 8. Conceptual framework for financial reporting chapter 1. The Objective of General Purpose Financial Reporting, and Chapter 3, Qualitative Characteristics of Useful Financial Information, 23. Retrieved from https://www.fasb.org/resources/ccurl/515/412/Concepts%20Statement%20No%208.pdf.Suche in Google Scholar
Haslam, C. (2017). International financial reporting standards (IFRS): Stress testing in financialized reporting Entities. Accounting, Economics, and Law: A Convivium, 7(2), 93–109.10.1515/ael-2017-0016Suche in Google Scholar
Power, M. (2010). Fair value accounting, financial economics and the transformation of reliability. Accounting and Business Research, 40(3), 197–210.10.1080/00014788.2010.9663394Suche in Google Scholar
Ramanna, K. (2018). Unreliable accounts: How regulators fabricate conceptual narratives to diffuse criticism. SSRN Electronic Journal. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3222559.10.2139/ssrn.3222559Suche in Google Scholar
© 2020 CONVIVIUM, association loi de 1901
Artikel in diesem Heft
- Frontmatter
- Research Articles
- Unreliable Accounts: How Regulators Fabricate Conceptual Narratives to Diffuse Criticism
- The Social Value of FASB
- Exploring the Relevance and Reliability of Fair Value Accounting
- The Pluralistic Foundations of Conceptual Veiling
- Unreliable Accounts: Governing behind a Veil
- Unreliable accounts: How regulators fabricate conceptual narratives to diffuse criticism – A response to Karthik Ramanna
- “Unreliable Accounts: How Regulators Fabricate Conceptual Narratives to Diffuse Criticism” by Karthik Ramanna: A Comment on Ideological Capture
- The Politics of Accounting Standards: A Comment on Ramanna’s “Unreliable Accounts: How Regulators Fabricate Conceptual Narratives to Diffuse Criticism”
Artikel in diesem Heft
- Frontmatter
- Research Articles
- Unreliable Accounts: How Regulators Fabricate Conceptual Narratives to Diffuse Criticism
- The Social Value of FASB
- Exploring the Relevance and Reliability of Fair Value Accounting
- The Pluralistic Foundations of Conceptual Veiling
- Unreliable Accounts: Governing behind a Veil
- Unreliable accounts: How regulators fabricate conceptual narratives to diffuse criticism – A response to Karthik Ramanna
- “Unreliable Accounts: How Regulators Fabricate Conceptual Narratives to Diffuse Criticism” by Karthik Ramanna: A Comment on Ideological Capture
- The Politics of Accounting Standards: A Comment on Ramanna’s “Unreliable Accounts: How Regulators Fabricate Conceptual Narratives to Diffuse Criticism”
