Traditional accounting recognition standards and their limitations?

Accounting confirmation was discussed in the early western accounting literature, but the most authoritative definition of accounting confirmation is the No.5 financial accounting concept announcement "Confirmation and Measurement of Enterprise Financial Statements" published by FASB in 1984. According to the announcement, "confirmation is the process of formally recording or including an item as assets, liabilities, operating income, expenses, etc. In financial statements, including describing an item in words and figures at the same time, the amount of which is included in the total amount of the statement. For an asset or liability, confirmation should not only record the acquisition or occurrence of the item, but also record the subsequent changes, including those eliminated from the financial statements. The announcement also believes that "the confirmation of projects and related information should meet four basic confirmation standards." Anyone who meets the four standards should be confirmed on the premise that the benefits outweigh the costs and importance. The criteria are: definition-the project should conform to the definition of an element in the financial statements; Measurability-having relevant measurement attributes, enough to be measured reliably; Relevance-related information plays an important role in user decision-making; Reliability-information is true, verifiable and unbiased. "Accounting recognition standards, as the characteristics of accounting items confirmed by the accounting system, are a powerful guarantee for the operation of modern financial accounting systems. All accounting items that meet the standards are recognized as corresponding accounting elements and included in the financial statements, while information that cannot fully meet the above standards is discarded from the financial statements. These standards have played a positive role in ensuring the relevance and reliability of accounting information, thus improving the utilization rate of accounting information. However, in the past 20 years, the business environment of enterprises has changed greatly. The usefulness of accounting information generated by the traditional accounting confirmation mode has been criticized by more and more users, and the accounting confirmation mode is facing the pressure and challenge of innovation. StevenMHWallman, a member of the American Stock Exchange (SEC), believes that the traditional accounting recognition standards have the following limitations: "First, those potential related items are ignored because they do not meet the recognition standards (usually due to reliability reasons); Second, items that are increasingly useless due to pricing or other reasons are still included in the report; Thirdly, people don't always know why some information is included in financial statements and others are excluded from them. "