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South African Journal of Economic and Management Sciences

versão On-line ISSN 2222-3436
versão impressa ISSN 1015-8812

S. Afr. j. econ. manag. sci. vol.12 no.3 Pretoria Out. 2009

 

ARTICLES

 

Issues surrounding the classification of accounting information

 

 

Huibrecht M van der PollI; Daan G GouwsII

IDepartment of Management Accounting, UNISA
IIDepartment of Financial Management Sciences, University of Pretoria

 

 


ABSTRACT

The act of classifying information created by accounting practices is ubiquitous in the accounting process; from recording to reporting, it has almost become second nature. The classification has to correspond to the requirements and demands of the changing environment in which it is practised. Evidence suggests that the current classification of items in financial statements is not keeping pace with the needs of users and the new financial constructs generated by the industry. This study addresses the issue of classification in two ways: by means of a critical analysis of classification theory and practices and by means of a questionnaire that was developed and sent to compilers and users of financial statements. A new classification framework for accounting information in the balance sheet and income statement is proposed.

Keywords: Accounting information, attribute, classification, reclassification

JEL M41


 

 

“Full text available only in PDF format”

 

 

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