Value and Profit
An Introduction to Measurement in Financial Reporting

A unique survey and analysis of the theory and practice of measurement in financial accounts, covering both traditional and alternative methods.

Geoffrey Whittington (Author)

9780521190978, Cambridge University Press

Hardback, published 3 August 2017

362 pages
23.5 x 15.6 x 2.3 cm, 0.63 kg

'Having worked as a distinguished academic and a leading standard-setter for many years, Whittington has an understanding second to none of the complex and important problems in accounting measurement. In this book he deploys impressive communication skills to make that understanding accessible to a wide readership. An invaluable guide to a subject which is critical to many major economic decisions, but widely misunderstood.' Geoff Meeks, University of Cambridge

The measurement methods used in financial accounting affect our perception of the value and performance of businesses by determining the amount of reported profit or loss and the resources of the business. Thus, measurement affects shareholders and other stakeholders in the business. It has even been suggested that the world financial crisis of 2007–2010 was partly due to the mis-measurement of financial instruments. In this book, Geoffrey Whittington provides a unique survey of the theory and practice of measurement in financial accounts. It seeks to define and illustrate alternative methods, using simple numerical examples, and to analyse their theoretical properties. Also, it summarises extensive empirical evidence and the historical development of ideas and practice. It is essential reading for advanced undergraduate and postgraduate students studying financial accounting, as well as practitioners and policy-makers concerned with accounting standards.

1. An introduction to the measurement problem in financial accounting
2. Fundamentals
3. Historical cost accounting
4. Current value accounting 1
5. Inflation and the general price level
6. Current value systems 2: capital maintenance concepts and real terms accounting
7. Review
Notes
Bibliography
Index.

Subject Areas: Finance [KFF], Financial accounting [KFCF]