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An Axiomatic Theory of Accounting Measurement - Part II


Willett, RJ, An Axiomatic Theory of Accounting Measurement - Part II, Accounting and Business Research, 19, (73) pp. 79-91. ISSN 0001-4788 (1988) [Refereed Article]

Copyright Statement

Copyright Routledge 1988

DOI: doi:10.1080/00014788.1988.9728838


Willett (1987) described a transactions based theory of funds accounting. This paper extends the theory to explain asset and profit measurement. Eight axioms are listed which, when interpreted in the context of cost structures, are sufficient to justify the logic underlying the generation of accounting numbers in financial statements. Although the theory is expressed using deterministic concepts, one of its implications is that many derived accounting measurements used in practice (e.g. income calculations) are of an inherently probabilistic nature. The theory identifies the main stochastic variable which determine the statistical characteristics of such accounting numbers.

Item Details

Item Type:Refereed Article
Research Division:Commerce, Management, Tourism and Services
Research Group:Accounting, auditing and accountability
Research Field:Accounting theory and standards
Objective Division:Economic Framework
Objective Group:Measurement standards and calibration services
Objective Field:Service industries standards and calibrations
UTAS Author:Willett, RJ (Professor Roger Willett)
ID Code:100582
Year Published:1988
Deposited By:TSBE
Deposited On:2015-05-20
Last Modified:2015-06-09

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