The 1952 Study, Accounting for Inflation. A Review Article

Article Abstract:

The Association of Certified Accountants (ACA) has recently reprinted its study of replacement cost accounting, first published in 1952. The basic argument in the study is that the cost of using fixed assets and inventories should be measured in terms of current replacement cost, as opposed to historical costs. In the case of replacement cost approach, monetary assets require no restatement. Another point strongly advanced is that general and specific price adjustments may both be combined in the same financial statements. The issue concerns the need for retrospective adjustment when prices rise and assets are written off over more than one period. Under a replacement cost system, the total charges for depreciation are based upon the write-off in each period. The survival of business firms requires replacement cost data as being more relevant than historical cost data. Unless accounts incorporate these, they are for many purposes of limited value.

Purchasing, Evaluation, Industrial equipment, Finance, Accounting and auditing, Capital, Inflation accounting, Replacement of industrial equipment

---

The Evolution of the Harmonizing Provisions of the 1980 and 1981 Companies Acts

Article Abstract:

During the twentieth century, until the 1980 Companies Act, British legislation relating to financial reporting has been fairly sparse and has moved forward in an evolutionary way. The advent of the 1980 and 1981 Companies Acts brings about several changes. For example, introduction of a distinct label and minimum capital requirements for public companies, of compulsory formats and detailed measurement rules for financial reports, and of reduced publication requirements for smaller companies. There are some cases where the British accounting tradition may manage to side-step the detailed requirements of the new legislation, but even here the changed letter of the law may have an important influence in the longer run.

Laws, regulations and rules, Financial statements

---

Similar abstracts:

• Abstracts: Profit-Sharing and the Finances Acts 1978 to 1983: A Case for a Review of Incentives. Disclosure of proprietary information in the course of an acquisition
• Abstracts: Claims-made insurance and the coverage gap. 'Floater' Coverage Enables Firms to Insure Artwork Up to Replacement Value
• Abstracts: No arbitrage and valuation in markets with realistic transactions costs. The Role of Cash Balances in Firm Valuation
• Abstracts: Traded Options II - Hedging, Risks and Taxation. Routine Planning for the Company Year-End

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.