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Whither the Concept of Income?

Author

Listed:
  • Saito Shizuki

    (University of Tokyo, Tokyo, Japan)

  • Fukui Yoshitaka

    (Aoyama Gakuin University – Graduate School of International Management, Tokyo, Japan)

Abstract

Since the 1970s, the decision-usefulness has taken center stage and our attention has been concentrated on valuation of assets and liabilities instead of income measurement. The concept of income, once considered the gravitational center of accounting has lost its primacy and become a byproduct of the balance sheet derived from the measurement of assets and liabilities. However, we have not been equipped with robust conceptual foundation supporting theoretically reasoned accounting measurement. It is not only theoretically but also practically important to renew our seemingly waned interest in the concept of income because ongoing reforms of accounting standards cannot be successfully implemented without a sound understanding of the concept of income.

Suggested Citation

  • Saito Shizuki & Fukui Yoshitaka, 2019. "Whither the Concept of Income?," Accounting, Economics, and Law: A Convivium, De Gruyter, vol. 9(1), pages 1-16, March.
    • Handle: RePEc:bpj:aelcon:v:9:y:2019:i:1:p:16:n:2
    DOI: 10.1515/ael-2016-0013
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    References listed on IDEAS

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    1. Fukui Yoshitaka, 2011. "The Imagined Dichotomy of Accounting versus Economic Income Concepts," Accounting, Economics, and Law: A Convivium, De Gruyter, vol. 1(2), pages 1-15, October.
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    3. Klamer, Arjo, 1989. "An Accountant among Economists: Conservations with Sir John R. Hicks," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 167-180, Fall.
    4. Shizuki Saito, 2011. "Accounting Standards and Global Convergence Revisited: Social Norms and Economic Concepts," The Japanese Accounting Review, Research Institute for Economics & Business Administration, Kobe University, vol. 1, pages 105-117, December.
    5. John H. Cochrane, 2014. "A Mean-Variance Benchmark for Intertemporal Portfolio Theory," Journal of Finance, American Finance Association, vol. 69(1), pages 1-49, February.
    6. Michael Bromwich & Richard Macve & Shyam Sunder, 2010. "Hicksian Income in the Conceptual Framework," Abacus, Accounting Foundation, University of Sydney, vol. 46(3), pages 348-376, September.
    7. Yuri Biondi, 2005. "The firm as an Entity: Management, Organization, Accounting," Post-Print halshs-00203036, HAL.
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