Preface

This book is intended to introduce value-added accounting to a wider audience than its current proponents and users. This book is directed both at accounting practitioners and accounting end-users. It is designed to provide both a theoretical framework and a practical framework for a new type of financial accounting that can be easily understood and easily used. This new accounting approach is designed to accomplish several ambitious goals, among them, 

    1. Unify accounting so that capital market accounting, financial accounting, management accounting, responsibility accounting, strategic and operational accounting, all have the same economic basis  
    2. Clarify causal relationships between management decisions and financial results 
    3. Scale financial measurements to the enterprise not the individual transaction 
    4. Simplify accounting so that many of the complexities and judgmental aspects of traditional accounting are eliminated 
    5. Base accounting on real rather than artificial quantities 
    6. Make accounting more relevant by requiring it to precisely serve end-user needs 
    7. Make accounting more complete by requiring it to incorporate all significant value components 
    8. Eliminate inconsistencies that plague traditional financial accounting 
    9. Increase the efficiency of the capital markets by providing for a better flow of information from management to the shareholder 
    10. Increase the effectiveness of management at all levels by providing and promoting better decision tools 
    11. Provide crucial disciplines to value-added accounting to make it reliable and widely acceptable 
    12. Define a new co-operative multi-disciplinary approach to accounting making appropriate use of specialized professional knowledge 
    13. Exploit information technology more fully 
    14. Change the perspective of accounting from a static retrospective focus to a dynamic view of the future



The accounting system that will accomplish these bold goals is Accounting For The Future (AFTF). AFTF is not entirely new; almost all of its components are currently being used by various professions. What is new is the view that these components can now, and should now, be assembled into a cohesive and disciplined body of theory and practice. A major goal of this book is to facilitate, accelerate, and formalize an accounting evolution already in progress.

  

Back                 Home