- transactions can be expressed or measured in dollars;
- the enterprise will continue in business indefinitely;
- statements will be prepared at regular intervals.
Except that dollars are inflating away, are based on debt, are part of the money supply which is greatly exceeded by derivative instrument value (the shadow banking system.
Except that most companies do not continue in business indefinitely like MF Global, or Enron, or World Com, and when these entities collapse they cause great carnage, and further some of the systemically too big to fail banks are not liquid but rather are being supported by government bail outs.
Except that when prepared, statements are so full of crap, like NORTEL, that the users of the statements are totally bamboozled.
Accounting is a mugs game, created and perpetuated by accountants.
But what is the alternative?