Abstract
In Chapter 1 it was stated that the central objective of accounting measurement was to provide information about the well-being of the firm. This could be best expressed in terms of value and profit and the accounting statements which present this information are the balance sheet and profit statement. The discussion of the measurement of value and profit emphasised the following problems:
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(a)
The most suitable concept of value. Four alternatives were considered: original cost, replacement cost, selling price and future utility.
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(b)
The items which should be included in the list of assets to be valued.
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(c)
The most suitable approach to the problem of the need for periodic profit measurement of the firm’s activities, many of which are only partially completed.
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(d)
How measurement can be related to the needs of the users of the information.
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Notes and References
T. Keller and S. Zeff, Financial Accounting Theory II — Issues and Controversies ( New York, McGraw-Hill, 1969 ).
P. Garner and K. B. Berg, Readings in Accounting Theory ( Boston, Mass., Houghton Mifflin, 1966 ).
E. S. Hendrikson, Accounting Theory ( Homewood, Ill., Irwin, 1968 ).
P. Bird, ‘Standard Accounting Practice’, in H. C. Edey and B. S. Yamey (eds) Debits, Credits, Finance and Profits ( London, Sweet & Maxwell, 1974 ).
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© 1977 Arthur Hindmarch, Miles Atchison, Richard Marke
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Hindmarch, A., Atchison, M., Marke, R. (1977). Accounting Concepts. In: Accounting: An Introduction. Palgrave, London. https://doi.org/10.1007/978-1-349-15639-9_2
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DOI: https://doi.org/10.1007/978-1-349-15639-9_2
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