theorychapter4規(guī)范會計理論-物價變動會計為例

FinancialAccountingTheory

CraigDeeganChapter4Normativetheoriesofaccounting-thecaseofaccountingforchangingprices

SlideswrittenbyMichaelaRankinLearningObjectivesInthischapteryouwillbeintroducedtosomeparticularlimitationsofhistoricalcostaccountingintermsofitsabilitytocopewithvariousissuesassociatedwithchangingpricesanumberofalternativemethodsofaccountingthathavebeendevelopedtoaddressproblemsassociatedwithchangingpricessomeofthestrengthsandweaknessesofthevariousalternativeaccountingmethods2PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganLearningObjectivesEvidencethatthecalculationofincomepursuanttoaparticularmethodofaccountingwilldependontheperspectiveofcapitalmaintenancethathasbeenadopted3PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganLimitationsofhistorical

costintimesofrisingpricesHistoricalcostassumesmoneyholdsaconstantpurchasingpowerthreecomponentsoftheeconomywhichmaketheassumptionlessvalidthanwhenhistoricalcostwasdeveloped:specificpricelevelchanges(shiftsinconsumerpreference;technologicaladvances)generalpricelevelchanges(inflation)fluctuationinexchangerates4PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganLimitationsofhistoricalcostintimesofrisingprices-continuedproblemofrelevanceintimesofrisingpricesasset’scurrentvaluemaybedifferentfromhistoricalcostproblemofadditivitycanoverstateprofitsintimesofrisingprices,withdistributionofprofitsleadingtoanerosionofoperatingcapacityincludingholdinggainswhichaccruedinpreviousperiodsincurrentyear’sincomedistortsthecurrentyear’soperatingresults

5PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganSupportforhistoricalcostaccountingPredominantmethodusedtodaysotendedtomaintainsupportofprofessionifnotfoundusefulbusinessentitieswouldhaveabandonedit6PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganDefinitionofIncomeThemaximumamountthatcanbeconsumedduringtheperiodwhilestillexpectingtobeaswelloffattheendoftheperiodasatthebeginningoftheperiod(Hicks,1946)considerationof‘well-offness’reliesuponanotionofcapitalmaintenancedifferentnotionsofcapitalmaintenancewillprovidedifferentperspectivesofincome

7PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganCapitalmaintenanceperspectivesFinancialcapitalmaintenanceperspectivetakeninhistoricalcostaccountingpurchasingpowermaintenancehistoricalcostaccountsadjustedforchangesinthepurchasingpowerofthedollarphysicaloperatingcapitalmaintenance8PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganDevelopmentofaccounting

forchangingpricesResearchinitiallyrelatedtousingpriceindicestorestatehistoricalcoststoaccountforchangingpricesliteraturethenmovedtowardscurrentcostaccountingthebasisofmeasurementchangedtocurrentvaluesnothistoricalvalues9PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganCurrentpurchasingpoweraccountingAlsocalledgeneralpurchasingpoweraccounting;generalpricelevelaccounting;constantdollaraccountingbasedontheviewthatintimesofrisingprices,ifanentityweretodistributeunadjustedprofitsbasedonhistoricalcosts,inrealtermstheentitycouldbedistributingpartofitscapital10PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganCalculatingindicesApriceindexisusedwhenapplyinggeneralpricelevelaccountingapriceindexisaweightedaverageofthecurrentpricesofgoodsandservicesrelatedtoaweightedaverageofpricesinapriorperiod(baseperiod)eg.AustralianConsumerPriceIndex(CPI)canuseageneralorspecificpriceindex11PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganPerformingcurrent

purchasepoweradjustmentsAlladjustmentsareperformedattheendoftheperiodadjustmentsareappliedtohistoricalcostaccountsmonetaryandnon-monetaryassetsconsideredseparatelyvaluesofmonetaryassetsdonotchangeasaresultofinflationliabilitiesgenerallyconsideredmonetaryitems12PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganPerformingcurrentpurchasepoweradjustments-continuedIntimesofinflation,holdersofmonetaryassetswillloseinrealtermstheassetshavelesspurchasingpowerattheendoftheperiodrelativetothebeginningoftheperiodholdersofmonetaryliabilitiesgain,giventheamounttheyhavetorepayattheendoftheperiodisworthlessthanatthebeginning13PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganPerformingcurrentpurchasepoweradjustments-continuedNochangeinpurchasingpowerarisesfromholdingnon-monetaryassetsnon-monetaryassetsarerestatedtocurrentpurchasingpowersonogainorlossisrecognisedpurchasingpowergainsorlossesareincludedinincomefortheperiod14PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganMovementsinnetmonetaryassetsMustidentifychangesinnetmonetaryassetsasaresultofrevenuesorexpensesintimesofrisingpricestherewillbealossinpurchasingpowerofcashreceivedduringtheyearmoreexpensesareabletobepaidearlierintheyearasmorecashrequiredforexpensesincurredlaterintheyear15PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganAdvantagesofcurrentpurchasingpoweradjustmentsReliesondataalreadyavailableunderhistoricalcostaccountingnoneedtoincurcostorefforttocollectdataaboutcurrentassetvaluesCPIdataalsoreadilyavailable16PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganDisadvantagesofcurrentpurchasingpoweradjustmentsMovementsinthepricesofgoodsandservicesincludedinageneralpriceindex(CPI)maynotreflectspecificpricemovementsindifferentindustriesinformationgeneratedunderCPPAmaybeconfusingtousersstudiesofsharepricereactionsfailedtofindmuchsupportfordecisionusefulnessofCPPAdata17PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganCurrentcostaccountingBaseduponactualvaluationsnotadjustedhistoricalcostdifferentiatesbetweenprofitsfromtradingandholdinggainsholdinggainscanberealisedorunrealisedincomeperspectiveadoptedwilldeterminewhetherholdinggainsorlossestreatedasincome18PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganTreatmentofholdinggains

orlossesFinancialcapitalmaintenanceperspectiveholdinggainsorlossescanbetreatedasincomephysicalcapitalmaintenanceperspectiveholdinggainsorlossescanbetreatedascapitaladjustments19PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganCCAunderphysicalcapitalmaintenanceapproachAdvocatedbyEdwardsandBellvaluationsbasedonreplacementcostsoperatingincomerepresentsrealisedrevenueslessthereplacementcostofassetsinquestiongeneratesameasureofincomethatrepresentsthemaximumamountthatcanbedistributed,whilemaintainingoperatingcapacityintact20PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganAdjustmentsusingEdwardsandBellapproachAdjustmentsusuallymadeatyearendhistoricalcostaccountsusedasbasisofadjustmentsoperatingprofitcalculatedbyusingreplacementcostsholdinggainsexcludedincalculatingcurrentcostoperatingprofitnotavailablefordividends21PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganAdjustmentsusingEdwardsandBellapproach-continuedBUTholdinggainsareincludedincalculatingbusinessprofitbusinessprofitshowshowtheentityhasgainedinfinancialtermsfromtheincreaseincostofitsresourcesDepreciationofnon-currentassetsbasedonthereplacementcostaswithCPPAnorestatementofmonetaryassetsrequired22PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganAdvantagesofcurrentcostaccountingDifferentiatingoperatingprofitfromholdinggainsandlossescanenhancetheusefulnessofinformationprovidedholdinggainsdifferenttotradingincomeasduetomarket-widemovementsthatareoftenbeyondmanagement’scontrolbettercomparabilityofvariousentities’performance23PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganCriticismsofcurrentcostaccountingReplacementcostofassetsmaynotbethesameforallfirmssomefirmsmaynotchoosetoreplacetheassetiftheentityrequiresreplacementassetsitmaybemoreefficientandlesscostlytoacquiredifferentassetsreplacementcostdoesnotreflectwhattheassetwouldbeworthifsold24PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganCriticismsofcurrentcostaccounting-continuedOftendifficulttodeterminereplacementcostsallocatingreplacementcostviadepreciationisstillarbitraryaswithhistoricalcostaccountingChambers(1995)claimedproductsofCCAwereirrelevantandmisleading25PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganContinuouslyContemporaryAccounting(CoCoA)ProposedbyChambersaswellasothersbasedonvaluingassetsatnetsellingprices(exitprices)atbalancedatesonthebasisororderlysalesreferredtoascurrentcashequivalentChambersarguedthatkeyinformationfordecisionmakingrelatestocapacitytoadapt

26PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganContinuouslyContemporaryAccounting(CoCoA)-continuedStatementoffinancialposition(balancesheet)consideredtobetheprimefinancialstatementshowsthenetsellingpricesoftheentity’sassetsprofitdirectlyrelatestochangesinadaptivecapitaladaptivecapitalreflectedbythetotalexitvaluesofassets27PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganCapacitytoadaptChambersapproachfocusesonnewopportunitiestheabilityoftheentitytoadapttochangingcircumstancestheabilityofthefirmto‘gointothemarketwithcashforthepurposesofadaptingoneselftocontemporaryconditions’assumestheobjectiveofaccountingistoguidefutureactions28PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganDefinitionofwealthunderCoCoAPresent(selling)priceisseenasthecorrectvaluationofwealthatapointintimepastpricesareamatterofhistorysonotrelevanttocurrentactionsprofitistiedtotheincrease(ordecrease)inthecurrentnetsellingpricesoftheentity’sassetsnodistinctionbetweenrealisedandunrealisedgains-allgainsaretreatedaspartofprofit29PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganDefinitionofwealthunderCoCoA-continuedProfitistheamountthatcanbedistributed,whilemaintainingtheentity’sadaptiveability(adaptivecapital)abandonsnotionofrealisationintermsofrecognisingrevenuerevenuesarerecognisedatpointofpurchaseorproductionratherthansales30PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganCapitalmaintenanceadjustmentUnlikeCCAthereisanadjustmenttotakeaccountofchangesingeneralpurchasingpower(inflationadjustment)capitalmaintenanceadjustmentsformpartoftheperiod’sincomewithacorrespondingcredittoacapitalmaintenancereserve(partofowners’equity)calculatedbymultiplyingnetassetsbytheproportionalchangeinageneralpriceindexovertheperiod31PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganAdvantagesofCoCoAByusingonemethodofvaluationforallassets(exitvalues)theresultingnumberscanbelogicallyaddedtogether(additivity)noneedforarbitrarycostallocationfordepreciationasgainsorlossesonassetsarebasedonmovementsinexitprice32PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganCriticismsofCoCoAIfimplementedCoCoAwouldinvolveafundamentalshiftinfinancialaccountingrevenuerecognitionpointsandassetvaluationscouldleadtounacceptablesocialandenvironmentalconsequencesrelevanceofexitpricesquestionedifwedonotexpecttoselltheassets33PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganCriticismsofCoCoA-continuedassetsofaspecificnatureconsideredtohavenovalueunderCoCoAbecausecannotbeseparatelydisposedofCoCoAignoresthe‘valueinuse’ofanassetquestionedwhetherappropriatetovalueallassetsatexitpricesiftheentityisagoingconcerndeterminingexitpricesforuniqueassetsintroducessubjectivityintoaccounts34PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganCriticismsofCoCoA-continuedCoCoArequiresassetstobevaluedseparatelyratherthanasabundlethereforewouldnotrecognisegoodwillasanassetvalueofassetssoldtogethercanbeverydifferentfromseparatesale35PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganDemandforpriceadjustedaccountinginformationLimitedevidencethatstockmarketsreacttocurrentcostandCPPAinformationlittleornosharepricereactiontopriceadjustedaccountinginformationfoundresultsmayhavebeenduetolimitationswithresearchmethodsusedreactiontootherinformationreleasedatthesametimecouldnotbedistinguishedusersmayhaveobtainedinformationfromothersourcespriortoreleaseofannualreports36PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganDemandforpriceadjustedaccountinginformation-continuedSurveysofmanagersfindlimitedcorporatesupportforcurrentcostaccountingcost,limitedbenefitsfromdisclosure,lackofagreementastoapproachareconsiderationssurveysofusersindicateinformationnothelpful,notusedandinformationdoesnottellusersanythingnewfindingsinterestinggiventheextentofvoluntarydisclosurebycorporations37PPTt/aCarnegieetal;FinancialandOrganisationalDecisionMakingAust.PPTt/aFinancialAccountingTheorybyDeeganReasonsforlobbyingWattsandZimmermanexaminedlobbyingreactiontoreleaseofFASB