Margins of Error in Accounting covers the main reasons why published company accounts cannot be completely 'accurate' and the likely extent of the resulting errors. Separate chapters cover: the 'interim-ness' of accounts; the use of current value estimates; the cumulative effect of inflation on money as the unit of account. INDICE: List of Tables - List of Figures - Preface - Acronyms - INTRODUCTION - Accounting rules - Inputs and outputs - Is too much expected of accounts?- Quantifying margins of error - Causes and types of error - Simple mistakes - PART II: THE INTERIM-NESS OF ACCOUNTS - Introduction - Fixed assets b tangible - Depreciation - General - Different methods - Different assumptions about life and residual value - Capitalising interest - Current assets - Stocks and work in progress - Long-term contracts - Stocks - Trade debtors - Liabilities - Current - Longer-term - Sales revenue - Revenue investments - Research and development - Staff training - Advertising - Taxation - Current - Deferred tax - Conclusions - PART III: BASIS OF MEASUREMENT - The purpose of accounts - Realised and unrealised profits - Technical aspects of Current Value accounting -Operating gains and holding gains - Replacement cost versus realisable value - Implications of Current Value accounting - Margins of error in b current valueb - Possible impact on reported profits - Revaluation of tangible fixed assets - Goodwill - Cash and liquid resources - Executive stock options - Provision for pensions - Discounting long-term liabilities - Derivatives - Conclusions- PART IV: THE UNIT OF ACCOUNT - Money and inflation - Money - Modern UK inflation - The unit of account - Impact on accounts - Which index to use? - Constant Purchasing Power accounting - Overview - Losses (and gains) in respect of monetary assets (and liabilities) - Fixed assets and depreciation - Comparisons over time - Lucas Industries plc. CPP accounts 1969-1994 - Foreign currencies - Conclusions - PART V: ACCOUNTING PROFIT VERSUS ECONOMIC INCOME - Economic income - Capitalising future income - Ex ante and ex post income - Historical cost accounting profit versus economic income - Interest on equity capital - Calculating the cost - Charging notional interest - PART VI: CREATIVE ACCOUNTNG- What is b creative accountingb ? - Incentives and pressures on managers - Profit and loss account - Overstating profits - Understating profits - Balance sheet - Overstating net assets - Understating net assets - Presentation and trends - Politics - Fraud - Non-profit and small entities - Conclusions - PART VII: SPURIOUS ACCURACY - Accounting - The appearance of precision - Preparersb exaggeration - Calendar problems - Finance - Stock market level - Earnings pershare - Cost of capital - Valuing equity shares - Measuring gearing - Economics - Prices - National income - Miscellaneous - PART VIII: NEAR ENOUGH - Accounting - Sports - Football - Cricket - Other sports - Weather - Political elections - Miscellaneous - Weights and measures - Transport - Medicine - Cooking -Back to accounting - PART IX: CONCLUSIONS - Introduction - Interim-ness - Basis of measurement - The unit of account - Accounting profit versus economic income - Creative accounting - Spurious accuracy - Near enough - Misreporting profit - Preventing avoidable error - Bibliography - Glossary - Name Index - Subject Index
- ISBN: 978-0-230-21991-5
- Editorial: Palgrave Macmillan
- Encuadernacion: Cartoné
- Páginas: 192
- Fecha Publicación: 15/01/2009
- Nº Volúmenes: 1
- Idioma: Inglés