Theory of Knowledge

Theory of knowledge—suggested links

• Do financial statements reflect the “truth” about a business?

• Many businesses are introducing metrics about their environmental, social or ethical performance on the side of financial information.

  • • Can well-being, or other social variables, be measured?

• How certain is the information we get from financial statements?

  • • For example, could we know in advance if an investment will be successful?

• What is the role of interpretation in accounting?

  • • For example, could we compare businesses by just looking at their financial statements?

• Often, financial information is presented to the wider audience in a graphical or summary form.

  • • Do such simplifying presentations limit our knowledge of accounts?

• Does the accounting process allow for imagination?

• Accounting practices vary from country to country.

  • • Is this necessary, or is it possible to have the same accounting practices everywhere?