Accounting for Price-Level Changes-Theory and Procedures

Accounting for Price-Level Changes: Theory and Procedures shows the importance of taking actions to incorporate the effects of changing prices into each firmâEUR(TM)s accounting systems, and encourage the firms to treat this incorporation as a normal routine.
This book shows that prices have in fact been altering over the years, and then explains the problems of changing prices as they affect accounting. Then, this text demonstrates these problems with the aid of a few simple examples. This book also includes statements of professional bodies and proposals that have been advocated. The latter part focuses on other accounting methods and concepts, complemented with illustrative examples.
This book will be beneficial to accounting practitioners and those working at business firms.

Inhalt

Preface
1 Introduction
2 Price-level Statistics
3 An Explanation of the Problem
4 Some Examples of the Problem
5 Statements by Professional Bodies
The Institute of Chartered Accountants in England and Wales
The American Institute of Certified Public Accountants
The American Accounting Association
The Institute of Cost and Works Accountants
The Association of Certified and Corporate Accountants
The Institute of Chartered Accountants of Scotland
6 Types of Proposals that have been Advocated
7 Profit Determination - The Index Problem
The Matching Process and Profit Determination
The Two Main Schools of Thought Concerning Indexes
Why Are there Two Main Schools of Thought on Indexes?
The Going Concern Concept Is Involved
Some Arguments against Specific IndexesâEUR and Some Rejoinders
Use a Consumer Price Index?
How Specific Should the Specific Indexes Be?
Some Variations from the Above Specific and General Index Schools
Indexes and "Objectivity"
8 Asset Valuations - "Holding Gains and Losses"
Asset Valuations
Holding Gains and Losses
Holding Losses Specifically
What if Inventories Are Valued at Net Selling Prices?
The "Good Buy"
The Private Speculator
Conclusion
9 Costs of Goods Sold and Inventories
(a) Wholesale and Retail Firms Using Perpetual Inventory Systems
(b) Manufacturing Firms Using Perpetual Inventory Systems
(c) Retail and Wholesale Firms Using Retail Inventory Methods
(d) Wholesale and Retail Firms Relying on Periodical Stock-takes
Terminology
LIFO
Appendix
10 Depreciation and Non-current Assets
Plant Registers
Depreciation Charges at Average Current Costs for the Period
Recommended Procedures
Accounting Entries for Recommended Procedures
Retrospective Adjustment to the Depreciation Provision Account
Accelerated Depreciation
Intangible Assets-Goodwill
Appendix
11 Monetary Items
"Holding Gains and Losses"
Long-term Liabilities
Preference Shareholders
When Are the Profits and Losses on Monetary Items Realized?
Which Index for Calculating Profits and Losses on Monetary Items?
The Computation of Profits and Losses on Monetary Items
Investments
Speculating in Commodities
Conclusion
12 Profit: At Average for Period Prices or a Tend of Period Prices?
13 An Illustrative Example - Including Changeover Procedures and Funds Statements
Results in Conventional Historical Costs
Change-over Procedures
Results in Average Current Costs
Protection of Capital
General Index Concept of Profit
Funds Statements
Appendix
14 Miscellaneous Matters
Comparisons with Previous Periods
Capital Reserve Accounts
The Position of Ordinary Shareholders
Company Taxation
Advantages of Accounting in Current Prices
The Auditor's Position
15 Actual aAplications of Accounting in Current Costs - Philips Electrical Industries
Philips Electrical Industries (N.V. Philips Gloeilampenfabrieken)
Costs of Goods Sold and Inventories
Depreciation and Non-current Assets
Monetary Items
General
Summary
16 Conclusion
Bibliography
Index