Home  Journals  International Accounting  43(385) - 2015 November

Credibility and informational limits of financial statements

Received: 25 September 2013

Received in revised form: 2 October 2013

Accepted: 13 October 2013

Available online: 16 March 2016

Subject Heading: REFORMATION OF REPORTING

JEL Classification: 

Pages: 49-64

The article considers the origin of the True and Fair View Doctrine; it analyzes approaches to interpretation of the “credibility of financial statements” concept. The authors also determine the informational limits of financial statements credibility and describe options to overcome them. The theory of Triple-entry bookkeeping by Yuji Ijiri, the organic balance-sheet theories by F. Schmidt, the theory of potential value by J.B. Dumarchey and the theories of off-balance-sheet accounting by N.A. Blatov and N.R. Veitsman constitute the basic framework of these options.

Keywords: balance sheet, double entry, credibility, layers, informational limits

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