Value Based Accounting

 

Welcome to the future of accounting.   This Website supports value-based accounting as a supplement to or a replacement for traditional cost-based GAAP accounting.  

Cost-based accounting looks backwards and lacks relevance.   To be decision-useful an accounting model must look to the future.  The primary users of accounting information (shareholders, analysts, management and creditors) all make decisions based mainly on expectations for the future.   The problem for accounting has been how to discipline expectations within a prospective or value-based accounting model.   Without such discipline, basic accounting principles cannot be satisfied.   But how can consistency, reliability, and audit-ability be enforced within prospective model?  It seems impossible.

Value-based accounting can be disciplined in a natural and effective manner.   One of the purposes of this Website is to explain how.   A recommended starting point is the Website Overview below.

   

Quick Links

Website Overview The CPA Vision Project and AFTF Questions and Answers
Draft Proposal Index to Other Essays External Links
The AIMR and AFTF Problems and Solutions E-mail to author