ABSTRACT
The monetary unit as the basis of accounting measurements.
Price Levels, Industrial Profits and Wages :
Wholesale price level indices from 1880 to 1951.
Profit Indices from 1908 to 1951.
Wages Indices from 1880 to 1951.
The relation between profits and wages and their contribution to National Income.
Indices of Replacement Costs.
Is the fluctuating price level of sufficient permanency and effect to disturb current accountancy conventions?
Effect of fluctuating price levels on :
Profit ascertainment.
Fixed assets.
Current assets.
Asset and liability claims.
Types of businesses affected by fluctuating price levels.
What are business profits?
The Accountant’s view.
The Economist’s view.
The Lawyer’s view.
The Business Man’s view.
British accounting views on changing price levels,
The effect of fluctuating price levels on the value of long-term trends.
Special considerations affecting Nationalised Undertakings.
Special considerations affecting Local Authorities, xi Open questions :
Is there a satisfactory alternative basis to the monetary unit for accounts?
26How should fixed assets be treated in the accounts?
Stated at original costs or revalued annually.
Depreciated on the principle of :
original cost;
current value.
Where improved replacement takes place at lower realcost owing to technical development
Should securities be taken into account on the basis of current values?
Can the existing accountancy basis of measuring business profits be varied in any way?
What practical means are available to accountants to enable them to measure change in asset values?
What are proper standards of accounting comparisons?
Conclusions.
