Cash Wealth Maximization: The Panaacea

Abstract

The tendency of the most important documents related to the formulation of the o bjectives of financial
reporting (statements) issued by the most influential professional accounting bodiees (AICPA, FASB and
IASB) in the world reflects a bias towards the provision of accounting information funddamentally relevant
to the goal of cash wealth maximizatioon. There are two assumptions; explicit and implicit. The explicit
assumption is that the information neeeded to achieve the goals of all interested nonn-owners groups, the
goal of management accountability and social goals can simply be satisfied by the same accounting
information required for achieving thee goal of cash wealth maximization. The implic it assumption is that
achieving the goal of cash wealth ma ximization would automatically lead to the attainnment of other goals.
Thus, the goal of cash wealth maximiz ation is assumed to be panacea that solves all problems. This simply
means that cash wealth maximizationn is the only prime goal that must be given the most priority when
formulating the objectives of financiaal reporting (statements) which would lead to foorce homogeneity on
what is fundamentally heterogeneous.