Yuji Ijiri’s thoughts as a possible solution for the recent revolutions in accounting standards- A focus on accounting measurements

Pei-Gin Hsieh

Abstract

This paper examines whether Yuji Ijiri’s thoughts can serve as solutions to the current debates on accounting measurements.  Countries around the world are adopting International Financial Reporting Standards.  However, recent accounting and financial scandals show that fair value may not be the best measure for companies. The researcher compares and analyzes the differences between Ijiri’s thoughts and major concepts provided in the IASB/FASB Conceptual Framework, IAS 1, and fair value accounting standards. The investigator shows that Ijiri’s (1989) dynamic structure of accounting measurements includes both faithfully represented and relevant information.  Ijiri and his co-authors in Demski et al. (2009) also suggest applying topology to provide objective accounting measurements and standards.   Therefore, Ijiri’s thoughts are possible solutions to the current debates on adopting fair value accounting.   .