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Financial Accounting Theory: William R. Scott
Financial Accounting Theory: William R. Scott
Fifth Edition
William R. Scott
1-1
Copyright © 2009 by Pearson Education Canada
Chapter 1
Introduction
1-2
Copyright © 2009 by Pearson Education Canada
1.2 Some Historical Perspective
• Early development
• Great depression of 1930s reinforced historical
cost accounting
• Alternatives to historical cost
– Cash basis accounting
– Current value accounting
• Value-in-use
• Fair value (exit price)
– Mixed measurement model
• Enron
• WorldCom
• Effects on financial reporting
– Sarbanes-Oxley Act
– More conservative accounting?
» Continued
» Continued