Profit MeasureMent under General Price level accountinG

someshwari, T and Mahadevappa, B,(April 2013), Profit MeasureMent under General Price level accountinG. , Journal of Commerce & Accounting Research, UNSPECIFIED

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This study aims to examine the differences in profit and earning per share under historical cost accounting and general price  level accounting system and to correlate them with current market price. A simple random sample of four companies was drawn from thirty BSE  SENSEX companies. Financial statements of 2001-02 to 2010-11 were restated under general price level accounting system. The main finding  of the study was that the inflation is recurring feature in India. The figure of profit under historical cost accounting is inflated and illusory. The  degree of relationship of Earning per Share with current market price of shares under historical cost accounting is higher than general price  level accounting.  The study suggests to show the inflated adjusted data as supplementary information to make a decision for investors and  policy makers.
Keywords : Trend of Inflation, Historical Cost Accounting, General Price Level Accounting, Earning per Share, Financial Statements, UNSPECIFIED
Journal or Publication Title: Journal of Commerce & Accounting Research
Volume: 2
Number: 2
Item Type: Article
Subjects: Akuntansi
Depositing User: Eriana Ringgowati
Date Deposited: 27 Dec 2019 03:25
Last Modified: 27 Dec 2019 03:25

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