Financial Statement Valuations in Italy: The Contribution of Fabio Besta (1845-1922)

Abstract

Fabio Besta (1845-1922) is widely recognized as one of the founding fathers of Italian accounting theory and as a prominent figure at an international level. Among his most significant contributions, his theorization on the topic of financial statement valuations stands out, characterised by a notable degree of originality. Although starting from the economic studies of the time on the theory of value, Besta elaborates a framework consistent with his conception of accounting as a “science of economic control”. This paper aims to analyse this contribution, going beyond simple historical reconstruction to delve into how the author addressed the complex problem of choosing between different valuation bases. Particular attention is paid to the comparison between the criterion of exchange value and the criterion of cost, a debate that still retains great relevance. Understanding the historical origins of these approaches allows us to interpret contemporary accounting choices with greater awareness, bringing out the theoretical and practical roots of still-open questions.

Keywords: Besta, Financial statement valuations, Valuation bases, Exchange value, Economic cost.

DOI: 10.7176/RJFA/16-4-03

Publication date: May 30^th 2025