1993 Fiscal Year Final Research Report Summary
Theoretical & Practical Research for Inflation Acounting
Project/Area Number |
03630077
|
Research Category |
Grant-in-Aid for General Scientific Research (C)
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Allocation Type | Single-year Grants |
Research Field |
Accounting
|
Research Institution | KYOTO UNIVERSITY |
Principal Investigator |
NAKAI Bunji KYOTO UNIVERSITY, Faculty of Economics, Professor, 経済学部, 教授 (90080233)
|
Project Period (FY) |
1991 – 1993
|
Keywords | Inflation / Financial accounting / Capital maintenance / Accounting for changing money value / General price level accounting / Purchasing power profit and loss / GNP implicit deflator / Translation of foreign currency statements |
Research Abstract |
Theoretical Aspect : By formularization of Accounting for foreign Currency Statements, the identical calculation structure was found between that and General Price Level Accounting(GPLA), one for foreign money value and the other for inland money value. That identity shows the necessity of GPLA application for Institutionalized accounting which discloses no purchasing power Profit&Loss in comparison with disclosing foreign currency exchange profit&loss in nominal capital maintenance accounting. Practical aspect : By using GPL adjustment formulae and some official statistical data, we calculated some GPL adjusted financial data----income, net worth, equity ratio, etc.----of American, British, German and Japanese companies for 1950--1990. The algebraic sum of the net purchasing power profit (or loss) and the depreciation GPL adjusment difference influences the profit-adjustment(real Profit) very much. As to the large companies in Japan which have low equity ratio, they get fictitious loss in time of higher inflation rate(1950--75), fictitious profit in time of lower inflation rate(1976--90). So GPLA is indidpensable for adequate and correct calculation of income and net worth, even in time of low inflation rate.
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Research Products
(5 results)