On the Application of Accounting Rates of Return
The article presents a study on the application of some accounting concepts and functions in economic analysis. According to the author, his analysis will provide a basis on which accountants can discriminate between the alternative rules and standards available to them by reference to their relevance to the information required by investors or regulators. The author states that current cost accounts should be used with care. The appropriate method for economic interpretation of rates of return on capital deals with the application of the balance sheet conventions of current cost accounting.
|Year of publication:||
|Authors:||Kay, John ; Mayer, Colin|
|Type of publication:||Article|
Kay, John and Mayer, Colin (1986) On the Application of Accounting Rates of Return. Economic Journal, 96 (381). pp. 199-207.