Monday, August 14, 2017

"Accounting Conservatism" - A Doctrinare Concept ?

B/F 
https://www.linkedin.com/pulse/concept-true-nd-fair-how-much-swaminathan-venkataraman

To Dilate:
Proposition :  No Statutory backing or Policy-backed necessity OR urge for any more of such concepts- especially, purely deserving to be dubbed outright, as doctrinaire..!    


Musings (jotted) :

A/C-ing  concepts galore, overwhelmingly numerous- many redundant, obsolete ?

Origin< double entry ; the rest are offshoots/ derivatives developed, thanks to the ingenuity of human mind, - with sky /horizon , nay beyond, being the limit- over the years, nay decades.

'Matching' is another such concept.

Ingenuity of human brain/  inventive, innovative
Most cannot be rightly called or regarded profoundly 'innovative', with a laudable purpose / objective to serve - for more than one reason, based on experience and wisdom gathered or remaining /left to be gathered in hindsight

‘Conservatism’, doctrinaire  – may not pass muster as a principle, or ...innovative ( incremental or .. )

It is at best an off-shoot /derivative of the fundamental concept- provision- definition/connotation
 
A refinement – scientific evaluation- Metal Box SC case – 'actuarial valuation'

Others e.g.

'Known'  Liability  X  > 

< KNOWN  ...( < Provision..) ?





'Estimation' – conservative, not in the sense of liberal but ‘neutral’-

Ongoing concern – no need or expectation or requirement of any evaluation

For all practical purposes , accounting principles, as embodied in acceptable standards, guidance notes, so on -
only indicative, to be adopted as considered most suited to a given situation /circumstance, on a case to case basis

CJI – Kapadia’s  lecture- Link

Subjectivity x objectivity - being pursued relentlessly , obstinately often with no proper application of mind- dependent upon the level, quality of individual intelligence, integrity, so on


The NCLT confirmed that the mere existence of a JVA and arbitration clause would not impede the NCLT from establishing its jurisdiction, as the jurisprudence around oppression enables the tribunal to keep the best interest of the company, its shareholders and, in this case, also the general public’s best interests in mind.




A number of basic accounting principles have been developed through ... The accounting standards have greatly amplified upon this concept in ...

The common set of accounting principles, standards and procedures that companies use to compile their financial statements. GAAP are a combination of  ...

Role of the Committee on Cost Accounting. Concepts and Standards. L. J. BENNINGER. Associate Professor, University of ...
Knowledge explosion- to remain not dazed or blinded is well-nigh  an  impossible /impractical ideal


Out-of-box considerations-