A revised lesson for accounting measurement from transaction cost economics

    Research output: Contribution to journalArticlepeer-review

    Abstract

    This paper disputes the view, put forward in an earlier issue of Australian Accounting Review, that transaction cost economics (TCE) shows that market values of assets are not appropriate in balance sheets and that the usefulness of balance sheets is therefore diminished. This view ignores the role of production costs, complexity and contracting costs in asset-ownership decisions, which reflect various incentives, including a trade-off between production costs and transaction governance costs. In fact, TCE theory lends some support to the provision of market values.

    Original languageEnglish
    Pages (from-to)66-72
    Number of pages7
    JournalAustralian Accounting Review
    Volume13
    Issue number29
    DOIs
    Publication statusPublished - 2003

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