The Accounting Review Vol. 40 No. 1 1965
THE ASSOCIATION OF FINANCIAL ACCOUNTING VARIABLES WITH COMMON STOCK VALUES.
Abstract
This paper is devoted largely to matters of concern to accountants. While this project is related to the works of several researchers who have been primarily interested in the valuation of securities or in the financing of corporations, it differs from these in that it tests funds flows, it utilizes the discounted value of stocks, and it is based on a sample from a more heterogeneous population. Monetary assets and liabilities are commonly measured by one of the three most relevant techniques, thus minimizing the obvious deficiencies in their measurement. Nonmonetary assets, on the other hand are usually shown at original money cost and nonmonetary liabilities at original money receipt. This practice is most frequently encountered with respect to inventories of commodities and depreciable plant assets. "Deferred credits" liabilities payable in nonmonetary goods or services are customarily measured at original money receipt rather than by a forward looking technique. These are the measurements that limit the usefulness of the earnings and book value data that depend on them.
- DOI
- 10.2308/tar-4497734
- Volume
- 40
- Issue
- 1
- Pages
- 119-134
- Language
- en
- Sources
- openalex crossref