文章基本信息

标题：Cash Wealth Maximization: The Jewel in the Crown (Reductionism in its Worst Form)
本地全文：下载
作者：Riyadh Al-Abdullah ; Riyadh Al-Abdullah ; Bassam M. Abu-Abbas 等
期刊名称：International Journal of Finance and Accounting
印刷版ISSN：2168-4812
电子版ISSN：2168-4820
出版年度：2013
卷号：2
期号：4
页码：239-247
DOI：10.5923/j.ijfa.20130204.07
语种：English
出版社：Scientific & Academic Publishing Co.
摘要：The essence of the four most famous documents relating to the formulation of objective(s) of financial reporting (statements) issued by the Trueblood Committee’s Report, SFAC No. 1, IASB’s CF and IASB-FASB’s Joint CF, clearly indicates that they are fully saturated with the Milton Friedman's neoclassical economics doctrines. Friedman's espoused belief in restricting the objective of a commercial enterprise within the realm of cash wealth maximization, reflects an absolute reductionism. All actions, behaviours, activities and decisions, by the management of a commercial enterprise are required to march on a narrow and intentionally chosen path; that is, cash wealth maximization. This type of reductionism is unusual and runs counter to the natural and fruitful reductionism adopted in all human endeavours, including scientific endeavors. The single objective of cash wealth maximization, adopted by the four accounting documents, actually restructures the definition of reductionism in accounting as a social science and activity, to result in an inevitable conclusion that the whole universe is built on cash, lives for cash, and can enjoy a prosperous viability, if only cash is maximized. Everything is required to revolve on the single objective of cash wealth maximization. It is emphasises, explicitly and implicitly, that all other issues, commercial or otherwise, are secondary to achieve the goal of cash wealth maximization. As a result, all other issues would be resolved if the objective of cash wealth maximization is achieved. The position of accounting professional bodies, when formulating the objective(s) of financial reporting (statements), reflects a literal adherence to Friedman’s doctrines. They look at cash wealth maximization as the single important goal of all business enterprises, and accounting must be geared to offer information conducive to this goal. All goals of all other interested parties (all non-owner groups) are reduced to this single goal. It appears that the thinking of professional accounting bodies’ reflects a position of being the staunchest ally of Friedman’s doctrines. Thus, the goal of cash wealth maximization is crowned by the professional accounting bodies on the top of all commercial enterprises’ objectives, ambitions and aspirations. Since the goal of cash wealth maximization has no competing rival, as an objective of financial information reported, then the goal of cash wealth maximization is the jewel in the crown. This is a lamented use of reductionism. Actually, this is reductionism in its worst form.
关键词：Cash Wealth Maximization; Objectives of Financial Statements (Reporting); Friedman; Reductionism; Jewel in the Crown