ABSTRACT

SFAS No. 33 (FASB, 1979b) required certain companies to present supplementary information applying current duplication-replacement price reporting,1 one of the kinds of alternative reporting principles using current buying prices, discussed in this chapter, but the FASB terminated that experiment because of apparent lack of interest by users. That was good because, as discussed below, reporting using current buying prices is even worse than reporting using the current broad principles, bad as that is. (It was a mixed blessing because, though the experiment also required use of a unit of measure defined in terms of a general purchasing power of the dollar, which is good, the experiment demeaned that unit, as discussed in Chapter 11.)

In general, authoritative recommendations for the presentation of current value information have been based on entry values of assets rather than on exit values.