Sunday 08, July 2012 by Robin Amlôt
Accounting - should it be a confidence trick?
The use of a single number for accounting terms such as profit or balance sheet value is clear and simple, but, according to the Long Finance initiative, wrong! ’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 more closely resemble other measurement sciences.
