Normative Accounting
Thursday, December 16, 2021 at 11:45AM
Charlie in Digital Financial Reporting

The article What is Normative Accounting? describes the problem and how normative accounting thus:

Normative accounting's premise is that value is subjective to the user. Having identified the user of the accounts and the decision that the user intends to make, the accounting treatment then follows. It means that there are many alternative fair views of an entity or a scenario each with different accounting treatments. 

Rethinking Capital is the home of normative accounting.

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