Value in Accounting free essay sample

Examines concepts of valuation of a firm, historical costs, assets, types of accounting (price-level, replacement cost) and normative principles. VALUE AND THE CONCEPTUAL FRAMEWORK OF ACCOUNTING The concept of value is central to the objectives of accounting (Harper Rose, 1993, p. 21). Nevertheless, defining exactly how value is to be determined remains a point of dispute among both accountants and the users of accounting information (Petree, 1993, p. 28; Aitken Loftus, 1994, p. 1). Within such an environment, one issue raised is the value of continuing to pursue the development of a conceptual framework for accounting when the definition of a key conceptvalueremains a point of dispute. With respect to the valuation of the worth of a firm, one contention is that financial reports should provide prospective information to facilitate the assessment of the firms future (Walther, 1993, pp