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R W Scapens's Accounting in an Inflationary Environment PDF

By R W Scapens

ISBN-10: 0333226267

ISBN-13: 9780333226261

ISBN-10: 1349157775

ISBN-13: 9781349157778

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Example text

In addition to the time dimension of exchange value, the direction of the exchange must be considered. The exchange value of an asset on entry to the business may be appropriate, or alternatively, the exchange value on exit could be used.

Accounting, as outlined by the Statement of Standard Accounting Practice No. 7, has received support in several countries. P. accounting will be described in more detail. It will be assumed that an appropriate price-level, or purchasing-power, index is available. CHAPTER 4 Constant Purchasing Power Accounting ))-Application Measurement of financial transactions in terms of constant purchasing power does not necessarily imply a major change in established accounting principles. Historical cost can be retained as the basis of financial reporting.

P. sed in this generally accepted manner. P. accounting is not a simple alternative to current-cost accounting - the two methods are not mutually exclusive. P. P. However, all other accounting principles remain operative. P. P. financial statements requires Constant Purchasing Power Accounting II- Application 33 the restatement of each transaction; but if every transaction were to be restated individually, a completely revised accounting system would be required. P. financial statements will be prepared by a series of adjustments applied to the information collected by the conventional accounting system.

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Accounting in an Inflationary Environment by R W Scapens

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