The Subject Matter of Financial Reporting: The Conflict between Cash Conversion Cycles and Fair Value in the Measurement of Income

This paper challenges the view of primacy of a balance sheet-based financial reporting model and its extension into a full fair value accounting model. The paper claims that accounting concepts and measurement attributes have to be aligned with the inherent economic logic of an activity if faithful representation is to be achieved.    

Andreas Bezold, a former chief risk officer and deputy CFO of a large German Bank, authored the paper.