Canning's The Economics of Accountancy-After 50 Years.
Abstract Canning's book "The Economics of Accountancy-After 50 Years," is the result of a "comprehensive study of accounting theory and practice," even though from the viewpoint of "the professional student of economics." Accounting is necessarily aggregative. Canning found that its literature and practice abounded with examples of different competing formulas or techniques of valuing. Little attention had been given to the effects of this on the meaning of financial statements and almost nothing had been done "to discover to what extent a common, general method might be expected to enhance the usefulness of the principal statements." This condition needed rectifying. The time-schedule of the money valuations of "successive desirable events proceeding from a wealth source" constitutes a measure of gross realized income. Direct valuation is possible only when "a realized money income exists and is statistically determinable." Realized money income is here used of calculated present value, which entails setting off the series of expected money outflows against the series of expected money inflows and discounting the net inflows to a present date.
- DOI
- 10.2308/tar-4489107
- Volume
- 54 (4)
- Pages
- 764-775
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref