This paper was prepared for the purpose of facilitating discussion at the Symposium on Financial Reporting and Standard Setting sponsored by the American Institute of Certified Public Accountants. The authors of the paper believe that the changing environment necessitates a thorough reexamination of financial accounting standard-setting processes in the United States. The following observations underlie the propositions offered in the paper:
* The increasing demand for and availability of alternative information is decreasing the demand for traditional financial accounting information.
* The conventional historical-cost-based accounting model is becoming increasingly inadequate for decision-support purposes.
SEC and Financial Reporting Institute-Topical Issues Studies 4
USC-Financial Accounting Study Group; Williams, Doyle Z.; Blacconiere, Walter G.; Caster, Paul; Chi, Charles; DeFond, Mark; Elnathan, Dan; Holder, William W.; Larsen, E. John; O'Leary, Daniel E.; Purvis, S.E.C.; and Smith, William R., "Setting Financial Accounting Standards for the Twenty-first Century" (1991). Business Faculty Publications. 132.
University of Southern California, Financial Accounting Study Group (1991). Setting Financial Accounting Standards for the Twenty-first Century. SEC and Financial Reporting Institute, School of Accounting, University of Southern California. Reprinted from: Financial reporting and standard setting. New York, N.Y. : American Institute of Certified Public Accountants, c1991.