What question did this study set out to answer?

This research aims to establish a theoretical foundation for understanding how executory contracts fit within current accounting principles.

A Theoretical Foundation for Leases and Other Executory Contracts.

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This analysis demonstrates how executory contracts qualify as assets and liabilities, indicating a need for capitalization in financial reporting.

This research aims to establish a theoretical foundation for understanding how executory contracts fit within current accounting principles.
Examined existing literature on capitalization of executory contracts
Explored accepted asset and liability concepts
Developed a theoretical framework for recording executory contracts
Concluded that exchange of promises in contracts constitutes an accounting transaction
Established that executory contracts can be classified as measurable assets and liabilities
Proposed that these contracts should be recorded in financial accounts if objectively measurable

Joseph F. Wojdak (1969) studied this question.

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This analysis demonstrates how executory contracts qualify as assets and liabilities, indicating a need for capitalization in financial reporting.