The Usefulness of Current Cost Accounting under the Periods of Price Fluctuations and Stabilities
山田 哲弘五十川 陽
218 , 2017-08-31
The purpose of this paper is to examine the usefulness of the classification of operating profit and holding gain which is feature of Current Cost Accounting in price stability periods and price fluctuation periods. Current Cost Accounting was discussed from 1960’s to 80’s because the United States faced with rapid price inflations, however the discussion and related researches also suspended with the end of inflations. However, Current Cost Accounting research is still important because the business cycles and the convergence of International Financial Reporting Standards. Therefore, we examine the usefulness of Current Cost Accounting by analyzing persistence of pseudo-operating profit and holding gain, which is used inventory turnover periods and depreciable tangible fixed assets in 34 years of Japan. The results indicate that the persistence of operating profit and holding gain is different, and the persistent is changed through the period of price fluctuations and stabilities. Furthermore, these are suggested that the classification of operating profit and holding gain is useful not only the price rising period but also the price fall period and the price stability period.