"The accounting profession has the important responsibility of measuring company performance accurately and fairly on a timely basis" (Kieso et al., 2013, p.5, emphasis in original). Yet we know that the preparation of financial statements involves the use of accrual accounting and estimates in conjunction with the foundational principle of periodicity.
- Comment on the statement from Kieso et al. in the context of: your understanding of accurately and fairly; the concepts of entity and proprietary perspective; the conceptual framework, the asymmetry of accounting information and the requirements of multiple stakeholders.