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International Accounting
 

The first attempt to uniform accounting in the USA: Individual and consolidated financial statements

Vol. 25, Iss. 4, APRIL 2022

Received: 17 February 2022

Received in revised form: 28 February 2022

Accepted: 31 March 2022

Available online: 15 April 2022

Subject Heading: CHAPTER OF HISTORY

JEL Classification: B15, M41

Pages: 459–482

https://doi.org/10.24891/ia.25.4.459

Sergei V. KOLCHUGIN Novosibirsk State University of Economics and Management (NSUEM), Novosibirsk, Russian Federation
s.kolchugin@rambler.ru

https://orcid.org/0000-0001-9575-1920

Subject. This article examines the first attempts to unify accounting in the United States and analyzes the information needs of users of accounting information, which led to the emergence of consolidated financial statements.
Objectives. The article aims to study the theoretical and methodological foundations of unification of US accounting in the context of individual and consolidated financial statements, as well as identify the theoretical and methodological foundations of consolidated financial statements as an independent type of financial reporting.
Methods. For the study, I used combinations of analysis and synthesis, induction and deduction, and historical and logical research methods.
Results. The article shows that the unification of accounting in the United States took place through the adoption of uniform rules, not through the recognition of generally accepted accounting principles. The first unified accounting rules were focused on meeting the information needs of banks and banking organizations as the main source of investment of commercial companies. Despite the existence of theoretical developments in the field of consolidated financial statements and the preparation of the first consolidated balance sheets in practice, preference was given to individual financial statements, which was due to the need to assess the creditworthiness of a potential borrower applying for bank financing.
Relevance. The results obtained can be used in the development of the theory and methodology of consolidated accounting as an independent type of accounting of a group of companies.

Keywords: harmonization, individual financial statements, consolidated financial statements, accounting theory, accounting methodology

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