The Paradigms of Accounting and Financial Reporting

Igor J. Yaremko, Lubomyr M. Pylypenko, Olena I. Tyvonchuk

Abstract


Purpose – The aim of the article is to substantiate the prerequisites for the development of a new paradigm of accounting and financial reporting of companies in postindustrial economy.
Design/Methodology/Approach – The study is based on the analysis of the existing approaches to the formation of accounting and financial reporting paradigm. For the new paradigm development the concept of intellectual capital maintenance and theoretical provisions of physical economy were applied.
Originality/Value – On the basis of the research, a number of anomalies and crises of existing accounting paradigm have been defined. In order to eliminate them, the main requirements for the new paradigm have been defined, in particular: explicit positioning of public importance of general purpose financial reporting (institutional context); complete representation of company’s intellectual potential by the system of accounting and financial reporting; consideration of social, environmental and ethical aspects of companies operation as important criteria of their overall effectiveness; consideration of dynamics of an economic development factor in the approaches to accounting objects valuation.

Keywords


accounting, financial reporting, paradigm, concept of capital maintenance, physical economy

Full Text:

PDF

References


Baetge, J., Kirsch, H. J. and Thiele, S. (2014). Bilanzen, 13., überarbeitete Auflage, IDW Verlag, Düsseldorf.

Brooking, A. (1997). Intellectual Capital, International Thomson Business Press, London.

Chaykovskaya, L. A. (2007). Modern Accounting Concepts (Theory and Methodology), Thesis for obtaining PhD in economic sciences, Plekhanov Russian Academy of Economics, Moscow.

Dyba, B. M. (2009). Intellectual Capital as an Object of Accounting, Finance of Ukraine, No. 2, pp. 118–125.

Edvinsson, L. and Malone, M. S. (1997). Intellectual Capital: Realizing Your Company’s True Value by Finding its Hidden Brainpower, Harper Business Press, New York.

Global Compact Network Ukraine. Retrieved January 28, 2017 from: http://www.globalcompact.org.ua/ua/about/inukraine

Global Reporting Initiative. Retrieved January 28, 2017 from: https://www.globalreporting.org/Pages/default.aspx

Hryniv, L. S. (2009). Development of Physical Economy: New Challenges and Models, [in:] Physical Economy: Research Methodology and Global Mission of Ukraine, Proceedings of the International scientific conference in Kyiv, Ukraine, April 8–10, Kyiv National Economics University, pp. 178–187.

Kravchenko, S. I. and Korneva S. E. (2009). Accounting and Analytical Support of Intellectual Capital Management, Management and Entrepreneurship in Ukraine: Stages of Formation and Development Problems, No. 647, pp. 393–398.

Kuhn, T. S. (1996). The Structure of Scientific Revolutions, 3rd ed., University of Chicago Press, Chicago.

Legenchuk, S. F. (2010). Theory and Methodology of Accounting in the Conditions of Postindustrial Economy, ZDTU, Zhytomyr.

Legenchuk, S. F. (2012). Accounting Theoretical Knowledge: From Theory to Metatheory, ZDTU, Zhytomyr.

Lev, B. (2000). New Accounting for the New Economy, Stern School of Business, New York.

Lev, B. (2001). Intangibles: Management, Measurement, and Reporting, Brookings Institution Press, Washington, DC.

Malyuga, N. M. (2005). Accounting in Ukraine: Theory and Methodology, Prospects for Development, ZDTU, Zhytomyr.

Podolinsky, S. A. (2000). Selected Works, compiled by L. Y. Korniychuk, KNEU, Kyiv.

Rudenko, M. (2005). Progress Energy. Essays on the Physical Economy, Jura, Ternopil.

Schumpeter, J. A. [1911] (2008). The Theory of Economic Development: An Inquiry Into Profits, Capital, Credit, Interest, and the Business Cycle, Transaction Publishers, New Brunswick.

Shevchuk, V. O. (2001). Ukrainian Scientific School of Physical Economy: International Dimension and Civilizational Perspective, Jura, Ternopil.

Shevchuk, V. O. (2013). Assets as Objects of Accounting, Control and Analysis: Problems of Environmental and Economic of Identification and Interpretation, Accounting and Finance, Vol. 1 No. 59, pp. 66–73.

Skop, H. I. (2015). Accounting for Intangible Assets: Reflection and Reassessment, Thesis for obtaining PhD, Specialty 08.00.09 Accounting, analysis and audit (by economic activity), Lviv Commercial Academy, Lviv.

Stewart, T. A. (1997). Intellectual Capital: the New Wealth of Organizations, Doubleday, New York.

Tennenbaum, J. (2015). The Physical Economy of National Development. Retrieved January 28, 2017 from: http://www.physicaleconomy.com/node/1

The Conceptual Framework for Financial Reporting (2010), issued by the International Accounting Standards Board (IASB). Retrieved January 28, 2017 from: http://www.ifrs.org/News/Press-Releases/Documents/ConceptualFW2010vb.pdf

The GRI Sustainability Reporting Guidelines. Retrieved January 28, 2017 from: https://www.globalreporting.org/reporting/g4/Pages/default.aspx

Yaremko, I. J. (2002). Economic Categories in Accounting Methodology, Kamenyar, Lviv.

Zhuk, V. M. (2010). The Use of Institutional Theory in Solving Problems of Accounting, Finance of Ukraine, No. 9, pp. 115–123.




DOI: http://dx.doi.org/10.17951/ijsr.2016.5.0.135
Date of publication: 2017-05-23 10:49:44
Date of submission: 2017-05-23 10:40:21


Statistics


Total abstract view - 1237
Downloads (from 2020-06-17) - PDF - 0

Indicators



Refbacks

  • There are currently no refbacks.


Copyright (c) 2017 Igor J. Yaremko, Lubomyr M. Pylypenko, Olena I. Tyvonchuk

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.