Statement of Financial Position: A Hybrid Recognition Model

Abstract

This discussion explores the hybrid combination of fair value and historical accounting measures used to present an entity’s statement of financial position, including assets, liabilities, and owners’ equity. Generally accepted accounting principles establish and guide valuation determinations that explain the valuation differences. The history of fair value guidance and recognition provides a foundation for presenting the advantages and disadvantages of financial measurement methods. Financial reporting valuation has evolved over time and is a copulation of both fair and historical value methodologies to determine the reported value. Future research is suggested to evaluate and resolve the outstanding reporting differences, concerns and issues.