The Economic Analysis of Accounting Profitability
Jeremy S. S. Edwards, Professor of Economics John A Kay, John Anderson Kay, Colin P. Mayer, Peter Moores Professor of Management Studies at the Sa Id Business School and Director Colin Mayer
Clarendon Press, 1987 - Business & Economics - 133 pages
An examination of the economic analysis of the principles of accounting, this book shows that there are a number of questions for which appropriately constructed accounting data can give precise answers--whether there should be entry to or exit from an industry by a firm, for example, or whether or not a particular project should be undertaken. It not only highlights the importance of thinking clearly about the questions which are being answered with the use of accounting data; it also shows how accounts should be constructed in order to answer these questions. The authors address in particular two topical issues in accounting--the appropriate way to adjust accounts for inflation, and the appropriate treatment of deferred taxation in accounts--and provide an analysis of the precise corrections required for each.
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The ValuetotheOwner Rules for Capital Valuation
The Assessment of Activities over Limited Segments using
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