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Pathology of The Current Model of Financial Statements Presentation and Development of Activity-Based Financial Reporting Model
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Bagher Shamszadeh *1   , Hasan Zalaghi1 , Hamed Aminian1 |
| 1- Bu-Ali Sina University |
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Abstract: (2634 Views) |
| FASB and IASB have made some criticisms on current preparation model of Financial Statements (Balance Sheet, Income Statement and Cash Flow Statement) which includes lack of using a uniform method in preparation and classification of data in financial statements, difficulty in comprehending the link between financial statements, and non-transparency. In this regard, IASB and FASB started a mutual project in 2004 which resulted to publishing a new financial statements presentation model in 2008. However, this new model was unsuccessful in achieving primary goals and for the same reason it has been remained silent since the opinion polling. By adopting an analytical-critical approach, this study uses Chomsky’s Syntax Theory and Shannon's Communication Theory to understand pathology of these criticisms about current preparation model of financial statements. Subsequently, by applying Fuzzy Delphi Method and doing polling from 44 experts and also utilizing Shannon’s Correction Model in general communication system and determining activities as drivers and fundamental basis for preparing financial statements, a new model named Activity-based Financial Reporting has been proposed which is mostly capable in resolving criticisms on the current model of financial statements preparation and achieving the objectives of IASB and FASB new model. |
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| Keywords: Financial Reporting, Activity, Shannon's Communication Theory, Chomsky’s Syntax Theory, Fuzzy Delphi Method |
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Full-Text [PDF 1125 kb]
(1225 Downloads)
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Type of Study: Research |
Subject:
Special
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