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THE FUNDS STATEMENT UNDER THE ENTITY CONCEPT.

David H. Li

Associate Professor of Accounting, Orange State College, Fullerton, California. 1

The Accounting Review 1963

Under the entity concept, alternative accounting procedures are designed to permit a corporation to change its strategy for survival in the light of its economic and financial outlook. To this extent alternative accounting procedures have financial implications. In as much as the funds statement is a report of a corporation's financial operations, it is argued that all income determinants that are subject to alternative treatment need be included in the funds statement on the strength of their having financial implications. This argument is submitted as the reason why some non-fund adjustments receive prominent attention in funds statement preparation and why others do not.

DOI
10.2308/tar-7106806
Volume
38 (4)
Pages
771-775
Language
en
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