Application of B-theory for numerical method of functional differential equations in the analysis of fair value in financial accounting
- Autores: Cheng Chen, Abdullah Albarakati, Yuhang Hu
- Localización: Applied Mathematics and Nonlinear Sciences, ISSN-e 2444-8656, Vol. 7, Nº. 2, 2022, págs. 193-202
- Idioma: inglés
- Enlaces
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Resumen
Financial accounting, the use of historical cost of assets, is an important basic principle of historical cost, which is tobecome the dominant mode of accounting measurement. Background analyses, as well as the historical cost basis and fairvalue, result from the development of the theory of historical cost and fair value. Historical cost and fair value measurementmodel has its own advantages and problems. Based on this background, the paper applies B- theoretical numerical methodsto differential equations pan function analysis for calculation of fair value accounting and conducts theoretical analysis oftheir stability and convergence. Finally, numerical examples with different methods of calculating an approximate solutionare provided and a comparison of the various methods is done based on the results obtained. The results show fair valueaccounting better meets the needs of the target –decision-making availability, compared to historical cost or fair value,more in line with the requirements of Accounting Information Qualit
