APPLICABILITY OF THE REALIZATION PRINCIPLE TO MONEY CLAIMS IN COMMON DOLLAR ACCOUNTING.
This article focuses on applicability of the realization principle to money claims in common dollar accounting. Common-dollar accounting refers to the branch of accounting that attempts to remove the distorting effects of changes in the general level of prices by stating all accounting magnitudes in terms of dollars having the same purchasing power. Such procedure is to be sharply distinguished from the adjustment of only depreciation and inventory charges. It is true that depreciation and inventory consumption charges may be converted into figures having more current significance than the original dollar figures. A very important difference between common-dollar adjustments and other methods of adjustment for inflation arises in the case of "money-value items" or "money claims," as they will be called throughout the remainder of this paper. It is much more difficult to determine the flow applicable to a bank balance. It is not possible to scrutinize the debits appearing on a bank's books to tell to what credits they refer.
- DOI
- 10.2308/tar-7059439
- Volume
- 30 (1)
- Pages
- 103-113
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref