Confidence Accounting: A novel proposal

By using distributions, rather than discrete values in accounting and auditing, Confidence Accounting would aid in effective pricing of risk by end-investors, notes a joint paper from ACCA.

A joint paper from Associated of Chartered Certified Accountants (ACCA), the Chartered Institute for Securities & Investment and Long Finance titled: “Confidence accounting: a proposal” highlights an alternative approach to reporting assets and liabilities for consideration.

Confidence Accounting – A novel proposal

‘Confidence Accounting’ is a term for a proposal to use distributions rather than discrete values in accounting and auditing. The term was coined by Long Finance proponents as part of a shift from using specific values in accounts to the use of interval estimates and confidence levels, making accounting and auditing practices...