摘要:

Lessor accounting raises intriguing problems. Its accepted methods spread depreciation, and thus profit, in yearly doses whose size jumps capriciously and with scant regard to any principle. Yet the economic qualities of an (asset do not change just because it is leased; the only new factor is the odd way in which tax and interest re‐shape its cash flows. If the rules of deprival value are sound for familiar assets, they should be sound too for leased assets. But its arithmetic must expand to cover flows (tax and interest) that are not usually coupled with depreciation. Two results then follow: after‐tax profit tends to be constant throughout the lease, and the full size of tax bounty becomes cl

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1982.tb00969.x

出版商:Blackwell Publishing Ltd    

年代:1982

数据来源: WILEY

摘要:

Professional accounting bodies in the United Kingdom, the United States and Canada are requiring disclosure of current cost of capital equipment and related depreciation. In this paper the ability of a normative programming model of the firm to produce depreciation allocations in accordance with economic depreciation is examined, and the model's depreciation allocations are compared with current professional pronouncements. It is found that if the firm can costlessly adjust capacity period‐by‐period, current cost depreciation is on strong theoretical grounds. Otherwise depreciation should be based on value

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1982.tb00970.x

出版商:Blackwell Publishing Ltd    

年代:1982

数据来源: WILEY

摘要:

This paper is based on a discussion of sets of constraints that can be introduced into mathematical programs for capital investment appraisal, in order to deal with the complexities of the UK tax system.

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1982.tb00971.x

出版商:Blackwell Publishing Ltd    

年代:1982

数据来源: WILEY

摘要:

Empirical studies have shown distributions of financial ratios are skewed. An explanation for this is given and it is argued that in such circumstances comparison of a fmancial ratio with some norm (e.g. industry average) is likely to misinform. It is also shown that where financial ratios are used as inputs to statistical models normality is irrelevant but a method of transformation into a normal distribution is provided whereby original interrelationships are preserved. Finally, because of the inadequacies of financial ratios, it is shown how regression analysis may be used in financial statement analysis.

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1982.tb00972.x

出版商:Blackwell Publishing Ltd    

年代:1982

数据来源: WILEY

摘要:

This paper presents a new approach to estimating the longrun internal rate of return (IRR) for the firm from the accountant's rate of profit based on published financial statements. The model developed for estimating the IRR includes both capital and net working asset investments. Modelling and estimating the growth of the firm is an integral part of the approach. Furthermore, estimating the parameters describing the long‐run financing behavior of the firm is presented based on discounted average funds flow statements. Finally, the approach is applied on the financial data of a large Finnish business enterpris

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1982.tb00973.x

出版商:Blackwell Publishing Ltd    

年代:1982

数据来源: WILEY

摘要:

Investigations into business cycles have found money supply to be a lead variable to stock prices. However, some would argue that the stock market, being efficient, anticipates money supply changes and therefore, stock prices are lead variables to money supply changes. Recent developments in time series methods have facilitated the testing of these relationships through identifying bivariate and multivariate autoregressive models. However, in many cases, the results using different procedures contradict themselves and are in conflict with theoretical reasonings. In this paper the causal relationship is tested between fiscal and monetary policies and stock prices using Canadian data and bivariate andmultivariate autoregressive models.

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1982.tb00974.x

出版商:Blackwell Publishing Ltd    

年代:1982

数据来源: WILEY

摘要:

Leases in commercial property in the UK usually allow for the rent to be revised at fixed intervals throughout the contract. This feature complicates the valuation of financial investment in commercial property because the income has contractual fixed compments as well as an equity‐type variability. This paper presents a valuation method based on an arbitrage pricing approach to the occupancy of a property. The limitations of this method can be found in the inapplicability to observed rental contracts which limit rent revision to ‘upwards‐only’ changes. From this characteristic, the method based on option pricing is proposed and the application of the model to conventional commercial leaseholds is demon

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1982.tb00975.x

出版商:Blackwell Publishing Ltd    

年代:1982

数据来源: WILEY

摘要:

This comment discusses two previous papers in this journal by J. Watson. It is shown that a confusion between necessary and sufficient conditions for the stability of the inter‐country correlation structure, and inconclusive empirical results led Watson to some misleading conclusions. It is also demonstrated that even if inter‐country correlation coefficients are stationary, ex‐ante correlations cannot be estimated directly from ex‐post data unless the underlying stochastic process is known. Alternative methods of examining the stability of the correlation structure indirectly are suggested. Furthermore it is argued that the choice of the base currency further limits Watson's f

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1982.tb00976.x

出版商:Blackwell Publishing Ltd    

年代:1982

数据来源: WILEY

摘要:

Previous studies have demonstrated that substantial benefits (beyond those available from a naive diversification strategy) were available to the international investor who could perfectly predict future inter‐country correlation coefficients. The present author's second paper (Watson, 1980) tested the null hypothesis that the sample correlation coefficients were drawn from the same population. The fact that the null hypothesis was not rejected does not exclude the possibility, as Yallup correctly points out, that the data could be generated by another proces

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1982.tb00977.x

出版商:Blackwell Publishing Ltd    

年代:1982

数据来源: WILEY

摘要:

This paper attempts to rebut some criticisms advanced by Amey against the conceptual basis of proposals to make an ex post imputation for the cost of equity capital in external fmancial reports. The principle argument is that ‘implicit’ opportunity costs are relevant not only ex ante, for decision‐making, but also ex post, if suitably defined and measured, for performance evaluation. An allowance for the foregone earnings of the equity does, therefore, seem justified. But rather than a standardised imputation of ‘interest’, the need for comparability across firms suggests firm ‐ or industry ‐ specific allowances which would take account of each firm's gearing and over

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1982.tb00978.x

出版商:Blackwell Publishing Ltd    

年代:1982

数据来源: WILEY