Abstract
This paper reconsiders the objectives of accounting, with particular attention to the development of the decision-usefulness theory, and explores its future implications for the financial reporting system. The decision-usefulness theory, introduced into the financial reporting system through ASOBAT, established a shift from the historical cost principle to a framework that accepts multiple measurement bases, including fair value. However, several issues have been raised, such as the abstract nature of the usefulness concept, its relationship with stewardship and conservatism, and the growing ambiguity of accounting boundaries as the disclosure of non-financial information expands. Although Japanese standards have incorporated provisions based on the decision-usefulness theory, the conceptual framework, which should serve as a theoretical foundation, remains at the discussion paper stage, and debates on qualitative characteristics have been insufficient. Thus, in order to make the decision-usefulness theory function effectively in the future, it is essential to advance discussions on the objectives and usefulness of accounting and to incorporate their findings into the financial reporting system.
https://ror.org/02rqvrp93 
