The Economic Analysis of Accounting Profitability

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9780198772408: The Economic Analysis of Accounting Profitability
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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 issues that are of great current interest 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 both.

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9780198772415: The Economic Analysis of Accounting Profitability

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ISBN 10:  0198772416 ISBN 13:  9780198772415
Publisher: Oxford University Press, 1987
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Edwards, Jeremy, Kay, J. A., Mayer, Coli
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Jeremy Edwards; J. A. Kay; Colin P. Mayer
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