The Paradigms of Accounting and Financial Reporting

Abstract

Purpose-The aim of the article is to substantiate the prerequisites for the development of a new paradigm of accounting and inancial reporting of companies in postindustrial economy. Design/Methodology/Approach-The study is based on the analysis of the existing approaches to the formation of accounting and inancial reporting paradigm. For the new paradigm development the concept of intellectual capital maintenance and theoretical provisions of physical economy were applied. Originality/Value-On the basis of the research, a number of anomalies and crises of existing accounting paradigm have been deined. In order to eliminate them, the main requirements for the new paradigm have been deined, in particular: explicit positioning of public importance of general purpose inancial reporting (institutional context); complete representation of company's intellectual potential by the system of accounting and inancial reporting; consideration of social, environmental and ethical aspects of companies operation as important criteria of their overall effectiveness; consideration of dynamics of an economic development factor in the approaches to accounting objects valuation.