"We argue in what follows that cash is not the ultimate test for establishing what is real in our current economic environment. The ontological domain of economics is larger than the one constructed upon the measurement of cash and cash-flows. If so, we have grounds to challenge accounting standard setters, both the IASB and FASB, to review the philosophical foundations of their Conceptual Frameworks. Indeed, only under very strict conditions does cash, which is a measure of market liquidity, identify with the dollar denominated unit of account in which accountants express financial statements.
This paper qualifies as an analytical essay; neither does it proceed from positive research, nor it is intended to be normative. In line with Lee (2009, p.66), we understand ˜it is imperative for accounting standard setters to commit to a body of knowledge that formally recognizes the ontology and epistemology of social reality associated with the practice of accounting representation. Developing this stream of theoretical literature is an endeavour that lies with accounting ‘educators and researchers [who are the ones who can] improve the quality of the accounting thought that supports accounting standards and practices idem, p.71). This paper is our modest contribution to that much needed research programme.