The figure pictures in financial statements may seem motionless. Yet, movement is essential to an enterprise. The analytical service of an account is best reflected by the relative rates of inflow and outflow of data. At the same time, the functional logic inherent in capital-income accounting does not support “valuation” as an appropriate part of accounting objectives. This is so because transaction experience is objective in nature whereas valuation is subjective. And the logic relevant to accounting actions would seem to include relevance as a key term because boundaries are functional aspects of accounting.
(2016), "Neglected Logic", A. C. Littleton’s Final Thoughts on Accounting: A Collection of Unpublished Essays (Studies in the Development of Accounting Thought, Vol. 20), Emerald Group Publishing Limited, pp. 339-350. https://doi.org/10.1108/S1479-350420160000020060Download as .RIS
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