Publisher's Synopsis
Excerpt from Inflation Adjusted Funds Flow Statements
One of the more unfortunate myths that we accountants have helped to perpetuate is that capital maintenance is in itself and of necessity a good thing. We have achieved this most misleading result by a continual emphasis on the calculation of net income as something entirely separate from capital without an equal stress on the hazards of this calculation or the dynamics of capitalism. The origin of this misplaced emphasis almost certainly goes back to textbook models of the firm. These models are invariably static, i.e., they analyse the conditions necessary for equilibrium at a point in time. There is no past or future in a static world, only a present. But time is of the essence of things in the real world. It takes time to produce goods for sale, time to distribute them, and time to receive payment. If all this did happen instantaneously, there would be no need for accounting, let alone an accounting problem. All our problems in volve time at their very heart. How to depreciate, how to match expenses, when to recognize revenue are all matters of timing. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.
