Abstract The article reports on accounting systems. Uniform accounting systems developed in Europe for firms in general, and by multicorporate structures for their component firms, proceed from the observations, that financial accounting was mainly accounting for the liquidity cycle of the firm and that the liquidity cycle was common to all businesses, but arrive at different forms of financial statements for reasons which are basically irrelevant to the question of uniformity. In this article, two forms of experimental accounting statements have been presented: the first, an integration of the income and funds flow statements with the statement of financial position; the second, an income⁄ product statement and statement of financial position ostensibly derived from economic theory and social accounting. It has been suggested that they differ in the extent to which accountants are able to utilize them, particularly for purposes of forecasting future financial position. The view that accounting income and economic income can be reconciled through changes in net present value of the firm, adjusted for payments in and withdrawals, requires testing and the place of windfall gains and unforeseen losses in this scheme of things is uncertain.
Kenneth S. Most (Wed,) studied this question.