Cari Maliyetler Sistemi

Date

1975

Author

Başoğlu, Besalet

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The net income of a Company for a period could be defined as the increase in its wealth, assuming no distribution is made to the owners. For Corporations wealth could be thought of as the total value of assets minus the total value of liabilities. The word «value» should not be confused with the word «price». The real changes in value are related to factors other than general price-level changes (such as shifts in demand and supply of the good in question). At present historical cost accounting system is used in the de termination of corporate net income. This system does not take the real value changes into account. As a result when real value changes occur in the assets of a company, its net income is erroneously stated and its balance sheet doesn't reflect the real financial condi tion of the company. Current cost accounting system is rejected by many accoun tants on the basis that current costs can not usually be determined objectively. However in many cases historical costs are not objective themselves. Besides current cost financial statements are more useful to the decision maker (users of accounting reports). In the opinion of the author the factor of relevancy by far outweighs the objectivity factor in this case and consequently current cost sta tements should replace historical cost statements in actual practice.

URI

https://hdl.handle.net/11511/112308

Collections

Department of Economics, Article