Reportable Creation: value, performance and risk measurement in financial reporting

textabstractReporting on value or reporting value-relevant information unavoidably implies that estimates of future cash flows should be made. Consequently, uncertainty becomes an important factor in (external) financial reporting. For a long time, uncertainty was dealt with by substituting relevant but uncertain recognition and measurement with less relevant but more certain principles. In the past few years, fair value becomes more and more a leading principle in financial reporting and risk disclosures become more elaborate. Reportable creation analyses the historical development in recording events with financial relevance (bookkeeping) at one hand and in techniques for making future estimates, respectively quantifying uncertainty, at the other. It then structures the best practices of contemporary financial reporting in the financial REPorting concept (Record, Explain, Project). Finally, it attempts to bring value and risk recording under the discipline of accounting systems by developing the perpetual value recording method and the perpetual risk recording method