ABSTRACT
An extensive search is taking place by accountants for soundly conceived current values for financial statements. In this connection some attention has been paid over the years to replacement value accounting as advocated in theory and practised by some firms in the Netherlands. This chapter discusses briefly the theory of replacement value as devised by Professor Th. Limperg, the auctor intellectualis of the replacement value theory, his theory of income measurement and the main points of criticism. The importance of the means of production in the production process is determined by the importance for the producer's income formation. It is rarely a question of direct satisfaction of the needs for the producer. Allocation theory deduces the value of the means of production, i.e. the value of the complementary goods, from the value of the resulting product.
