The ministerial resolution no. 692 : an explanation of its role in accounting standard settings

Abstract EN

This study examines the role of the Ministerial Resolution No.

692's "Statement of Financial Accounting Objectives and Concepts" in resolving disputes over accounting standards.

It does so firstly within showing that the commonly identified 'decision-usefulness approach' in the accounting literature underlies the Ministerial Resolution No.

692's "Statement of Financial Accounting Objectives and Concepts", and secondly via utilizing the well known single-person theory of decision to construct a linkage between this statement and accounting standards.

The concluding remarks we reach from this paper are that: (1) the Ministerial Resolution No.

692's "Statement of Financial Accounting Objectives and Concepts" recommends the presentation of supplementary current value information where this would increase the relevance of our reliable-historical-cost-based, financial statements, and, hence, (2) accounting standard developed by SOCPA can be judged by the extent to which it increases/decreases the disclosure of current (present/market) value information- the most consistent accounting standard with the "Statement of Financial Accounting Objectives and Concepts" will be the one which increases the presentation of supplementary current value information.