20th century approaches to accounting for the effects of inflation

Přístupy 20. století k účetnímu vykazování vlivů inflace

Jaroslava Janhubová and Miloslav Janhuba

Český finanční a účetní časopis, 2022, vol. 2022, issue 2, 5-18

Abstract: Paper deals with the effects of inflation on business management and the ways of expressing them in financial statements from a historical point of view. It points to the constructions of classical balance sheet theories, which arose as a reaction to the development of inflation in Germany after the First World War, with special attention to one of them: the organic balance sheet theory Schmidt's, first published a hundred years ago. The organic balance sheet is in many respects the predecessor of the contemporary reporting of value data mainly in the proper (real) price [fair value], with the fact that Schmidt also derived the determination of the "correct" income from the current prices (Tageswert). The issue of the variable purchasing power of the monetary unit is still alive, as is the effort to deal with this phenomenon within the framework of financial reporting. At the end of the twentieth century, complex accounting valuation models created in Europe and the USA, built on dynamic reporting principles together with the use of sophisticated calculations to determine reported values. The issue supplements a small illustrative example, using methodology from the USA.

Keywords: Valuation; Balancing; Inflation; Capital maintenance; Income; Oceňování; Bilancování; Inflace; Podstata podniku; Zisk (search for similar items in EconPapers)
JEL-codes: M41 O44 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://cfuc.vse.cz/doi/10.18267/j.cfuc.574.html (text/html)
http://cfuc.vse.cz/doi/10.18267/j.cfuc.574.pdf (application/pdf)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prg:jnlcfu:v:2022:y:2022:i:2:id:574:p:5-18

Ordering information: This journal article can be ordered from
Český finanční a účetní časopis, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3
http://cfuc.vse.cz

DOI: 10.18267/j.cfuc.574

Access Statistics for this article

Český finanční a účetní časopis is currently edited by Karel Brůna

More articles in Český finanční a účetní časopis from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().