Ijiri And Jaedicke Reliability And Objectivity Of Accounting Measurement
Reliability and Objectivity of Accounting Measurement,
Author: Y.Ijiri and R.K.Jaedicke, The Accounting Review, Vol.41. No.3, 1966, 474-483
Summary:
Accounting is a measurement system in which number of alternative measurement methods are available. Criteria for choosing best measurement alternative is an issue over the life of accounting. The user groups and the purpose for which data will be used are important, however, the use or purpose of the data is simply too broad and general a criterion to be of much help. Usefulness is made up of many factors. Data must be timely, reliable, accurate, relevant, material, etc., to be useful. Objective of this study is to analyze one important aspect of usefulness that is reliability and its linkage with objectivity.
THE CONCEPT OF OBJECTIVITY
Objectivity (like usefulness) of accounting measurements is usually regarded as an important criterion for choosing among measurement methods. It is difficult to define objectivity, researchers define objectivity in different ways, like Moonitz defines objective evidence as being subject to verification by a competent investigator. On the other hand, Arnett, concludes that “…..data still needs to be impersonal in order to be objective.”
Dictionary meaning of objectivity are the external reality that is independent of the persons who perceive it. However, the precise nature of the separate existence of the external reality is not clear, at least as it relates to accounting. More realistic definition of objectivity in Accounting is consensus among given group of observers over some measure. The measurement processes is described in following diagram.
All three object to be measured, Measurer, and measurement system play an important role in defining objectivity. For example, If the measurement rules in the system are specified in detail, we would expect the results to show little deviation from mea surer to measurer. On the other hand, if the measurement rules are vague or poorly
Author: Y.Ijiri and R.K.Jaedicke, The Accounting Review, Vol.41. No.3, 1966, 474-483
Summary:
Accounting is a measurement system in which number of alternative measurement methods are available. Criteria for choosing best measurement alternative is an issue over the life of accounting. The user groups and the purpose for which data will be used are important, however, the use or purpose of the data is simply too broad and general a criterion to be of much help. Usefulness is made up of many factors. Data must be timely, reliable, accurate, relevant, material, etc., to be useful. Objective of this study is to analyze one important aspect of usefulness that is reliability and its linkage with objectivity.
THE CONCEPT OF OBJECTIVITY
Objectivity (like usefulness) of accounting measurements is usually regarded as an important criterion for choosing among measurement methods. It is difficult to define objectivity, researchers define objectivity in different ways, like Moonitz defines objective evidence as being subject to verification by a competent investigator. On the other hand, Arnett, concludes that “…..data still needs to be impersonal in order to be objective.”
Dictionary meaning of objectivity are the external reality that is independent of the persons who perceive it. However, the precise nature of the separate existence of the external reality is not clear, at least as it relates to accounting. More realistic definition of objectivity in Accounting is consensus among given group of observers over some measure. The measurement processes is described in following diagram.
All three object to be measured, Measurer, and measurement system play an important role in defining objectivity. For example, If the measurement rules in the system are specified in detail, we would expect the results to show little deviation from mea surer to measurer. On the other hand, if the measurement rules are vague or poorly