Format:
XIV, 171 S.
,
graph. Darst
,
22cm
Edition:
1. publ.
Edition:
Online-Ausg.
Content:
Literaturverz. S. 155 - 158
Content:
This original and readable book by an acknowledged expert discusses four main reasons why published company accounts cannot be completely 'accurate': the 'interim-ness' of annual accounts; the growing use of hypothetical current value estimates; the impact of cumulative inflation on financial statements using money as the unit of account; and creative accounting by managers. The book attempts to quantify the extent of these errors wherever possible - some of them are very large indeed. There is also a chapter on spurious accuracy, why it persists and why it matters
Note:
Includes bibliographical references (p. 155-158) and indexes
,
Accounting rulesInputs and outputs -- Is too much expected of accounts? -- Quantifying margins of error -- Causes and types of error -- Simple mistakes -- PART II: THE INTERIM-NESS OF ACCOUNTS -- Introduction -- Fixed assets -- tangible -- Depreciation -- General -- Different methods -- Different assumptions about life and residual value -- Capitalising interest -- Current assets -- Stocks and work in progress -- Long-term contracts -- Stocks -- Trade debtors -- Liabilities -- Current -- Longer-term -- Sales revenue -- Revenue investments -- Research and development -- Staff training -- Advertising -- Taxation -- Current -- Deferred tax -- Conclusions -- PART III: BASIS OF MEASUREMENT -- The purpose of accounts -- Realised and unrealised profits -- Technical aspects of Current Value accounting -- Operating gains and holding gains -- Replacement cost versus realisable value -- Implications of Current Value accounting -- Margins of error in ₁current value₂ -- Possible impact on reported profits -- Revaluation of tangible fixed assets -- Goodwill -- Cash and liquid resources -- Executive stock options -- Provision for pensions -- Discounting long-term liabilities -- Derivatives -- Conclusions -- PART IV: THE UNIT OF ACCOUNT -- Money and inflation -- Money -- Modern UK inflation -- The unit of account -- Impact on accounts -- Which index to use? -- Constant Purchasing Power accounting -- Overview -- Losses (and gains) in respect of monetary assets (and liabilities) -- Fixed assets and depreciation -- Comparisons over time -- Lucas Industries plc. CPP accounts 1969-1994 -- Foreign currencies -- Conclusions -- PART V: ACCOUNTING PROFIT VERSUS ECONOMIC INCOME -- Economic income -- Capitalising future income -- Ex ante and ex post income -- Historical cost accounting profit versus economic income -- Interest on equity capital -- Calculating the cost -- Charging notional interest -- PART VI: CREATIVE ACCOUNTNG -- What is ₁creative accounting₂? -- Incentives and pressures on managers -- Profit and loss account -- Overstating profits -- Understating profits -- Balance sheet -- Overstating net assets -- Understating net assets -- Presentation and trends -- Politics -- Fraud -- Non-profit and small entities -- Conclusions -- PART VII: SPURIOUS ACCURACY -- Accounting -- The appearance of precision -- Preparers₂ exaggeration -- Calendar problems -- Finance -- Stock market level -- Earnings per share -- Cost of capital -- Valuing equity shares -- Measuring gearing -- Economics -- Prices -- National income -- Miscellaneous -- PART VIII: NEAR ENOUGH -- Accounting -- Sports -- Football -- Cricket -- Other sports -- Weather -- Political elections -- Miscellaneous -- Weights and measures -- Transport -- Medicine -- Cooking -- Back to accounting -- PART IX: CONCLUSIONS -- Introduction -- Interim-ness -- Basis of measurement -- The unit of account -- Accounting profit versus economic income -- Creative accounting -- Spurious accuracy -- Near enough -- Misreporting profit -- Preventing avoidable error.
Additional Edition:
ISBN 0230595014
Additional Edition:
ISBN 0230219918
Additional Edition:
ISBN 9780230595019
Additional Edition:
ISBN 9780230219915
Additional Edition:
Erscheint auch als Druck-Ausgabe Margins of error in accounting
Language:
English
Keywords:
Bibliografie
DOI:
10.1057/9780230595019
URL:
Volltext
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