Reporting Comprehensive Income: The Incoherencies of the IASB System and the Possible Contribution of Economia Aziendale
This paper acknowledges the strong debate on the incoherencies affecting the IASB system, which to date is still inconclusive in the examination of such conceptual weaknesses. We move from this awareness and focus on the debate on income presentation to detect the incoherencies of the
IASB accounting system through consideration of specific example IFRSs, on the grounds that the Conceptual framework (CF) and IFRSs, considered together as a set, should all be coherent with each other. We propose a possible pathway to improve such conditions thanks to the concepts and principles
of coherent accounting theory, the Italian Economia Aziendale. The paper presents the above-cited incoherencies and proposes areas of improvement and intervention, by showing the possible contribution of the Economia Aziendale theory in aligning standards and superseding incoherence,
relying on the two key principles of unitary view and durability. The study extends previous debates, overcoming the lacunae deriving from the well-acknowledged strong emphasis on accounting practice which has long been at the basis of the standard setters in general and the IASB in particular.
This is not only relevant for academics, but has importance for preparers, investors, and regulators.
Keywords: Economia Aziendale; IASB conceptual framework; IFRS; coherence; durability; unitary view
Document Type: Research Article
Affiliations: 1: University of Birmingham, Birmingham, United Kingdom of Great Britain and Northern Ireland 2: Dipartimento di Economia, Università della Campania Luigi Vanvitelli, Capua, Italy 3: Dipartimento di Economia Management e Istituzioni, Universita degli Studi di Napoli Federico II, Napoli, Italy
Publication date: 02 September 2019
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