Title: What is better: to be roughly right or exactly wrong? The role of quantitative methods in financial accounting

Authors: Eduardo Flores; Guillermo Oscar Braunbeck

Addresses: University of São Paulo, Ave. Prof. Luciano Gualberto, 908, (Bldg FEA3, office 18), São Paulo, SP, 05508-010, Brazil ' University of São Paulo, Ave. Prof. Luciano Gualberto, 908, (Bldg FEA3, office 230), São Paulo, SP, 05508-010, Brazil

Abstract: The aim of this commentary is to discuss whether quantitative techniques are relevant for the development of financial accounting practice. We focus on the use of quantitative techniques in financial accounting practice rather than financial accounting research because since Ball and Brown (1968) and Beaver (1968), the association with academic research has already received considerable attention and produced a broad range of manuscripts. Our focal point is particularly within the rules of International Financial Reporting Standards (IFRSs), which allow or request the fair value measurement. Therefore, we aim to bridge this concept with quantitative techniques. We conclude that the use of quantitative methods in financial accounting is closely related to the development and use of fair value measurement in financial reports. Last but not least, some examples are given of how quantitative methods can improve the success of financial reports in the future.

Keywords: financial accounting; fair value; quantitative methods; accounting measurement; accounting informational relevance.

DOI: 10.1504/IJMDA.2017.087621

International Journal of Multivariate Data Analysis, 2017 Vol.1 No.2, pp.162 - 172

Available online: 20 Oct 2017 *

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