Economic income, historical costing income and conservatism

2020

The paper intends to contribute at the debate on the ‘Evolutionary Advantage of Cost Accounting and Conservatism’ ( Accounting, Economics and Law: A Convivium, 2019. 9. issue) , founded on Braun’s study (2016) about The Ecological Rationality of Historical Costs and Conservatism. Moving from the IASB Conceptual Framework (2013) it stresses the renewed interest in income concept. The economic financial crisis of 2008-9 stimulated discussions between the traditional ‘received view’ of ‘cost-revenue approach’ (historical cost accounting) and ‘balance-sheet approach’ (‘current values’ and ‘present values’, that is ‘economic values’). Revaluations of assets, liabilities and owners’ equities are …