Chaos Theory and Financial Statements

Research output: Contribution to journalArticle

Abstract

Conceptual issues and the basis for the use of financial statements from the perspective of complexity and chaos are proposed. After analyzing the implications that these perspectives have for financial statements, basic accounting equation is examined from the view of complex logic through the mechanisms of the circumscription. Besides, the phase spaces arising from the relationship between indicators of financial health, such as total assets, stakeholder’s equity, profit and loss, or cash flow at end of year, are analyzed; also, the relationship among ratios of sustainability, liquidity, and profitability is revisited. The management discussion & analysis and notes to financial statements sections of financial statements are subjected to new interpretations, based on the beliefs logic and complex and chaotic metaphorical narratives. Finally, a critical perspective on the use of chaos and complexity in the analysis of financial statements is introduced.
Original languageEnglish (US)
Pages (from-to)355 - 368
Number of pages14
JournalInternational Journal Of Mathematics, Game Theory, And Algebra
Volume25
Issue number4
DOIs
StatePublished - 2017

    Fingerprint

Cite this