Advantages And Disadvantages Of Current Purchasing Power (CPP) Method CPP method is useful for finding out real financial position of organization. Following are the advantages of CPP method. 1. CPP method adopts the same unit of measurement by taking into account the price changes. 2. Under CPP method, historical accounts continue to be maintained. CPP statements are prepared on supplementary basis. 3. CPP method facilitates the calculation of gain or loss in purchasing power due to the
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1. Why and how are the capital and current account tied together so closely? In the balance of payment, current account and capital account are tied together by an accounting identity. Current account on one side and the capital and financial accounts on the other side should balance each other out due to the double entry of each transaction. [ Current Account + Financial Account + Capital account + Official Reserve Account = 0 ] For example, if a country has a positive capital and financial
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statements (wearing out of assets, increase in market value) Advantage: +) objective method: documentary evidence to prove the purchase price of an asset, or amounts paid as expense. +) costs can easily be verified. * Alternative method of accounting that have been developed to address the problem: Measurement of the elements of financial statements: measurement options rather than historical cost include: +) replacement cost/ current value: means the amount need to replace an item with an
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factors of strength that can be found in a company who’s going public, as well as the company understands that with going public, their real capital can be created. This capital can allow more money to go towards research and development, pay for current capital expenditures, or even help pay off existing debts (Investopedia, 2009). When an organization is publicly traded, this means that the public can notice a company on a much larger scale, than they would have in the past. There now is future
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on financial are not economically relevant because prices have changed since they were incurred. Second, since the numbers on financial statements represent dollars expended at different points of time and, in turn, embody different amounts of purchasing power, they are simply not additive. In most countries, primary financial statements are prepared on historical cost basis of accounting without regard either to changes in the general level of prices of assets held , except to the extent that property
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me without further explanation 3 the big advantage of hca is that it leads to absolute certainty and it fits in perfectly with the cash flow statement. Hca tells us exactly what has been paid and what has been received and therefore there is no doubt about balance sheet amounts. The alternatives, where accountants attempt to take inflation into account, can lead to many problems. There have been several forms of current cost accounting, purchasing power accounting and so on since the mid 1970s that
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balance sheet. The historical cost will equal the carrying value if there has been no change recorded in the value of the asset since acquisition. Improvements may be added to the cost basis of an asset. Historical cost does not generally reflect current market valuation. Alternative measurement bases to the historical cost measurement basis, which may be applied for some types of assets for which market values are readily available, require that the carrying value of an asset (or liability) be updated
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business case. Specifically, this part contains the reasons and motivations for exploiting the new project, and the business case organizer. Additionally, the relevant environment conditions are described from several aspects in detail. Meanwhile, the current situation and opportunities are analyzed via SWOT model. After that a detailed description of assumption and obstacles about present condition and future projects is shown. Next, we provide two feasible options for ALDI, and we adopts several elements
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chain Design S/C Project management Leasing & sales Property Management Refurbishment & redevelopment (Renovation of the shopping centre or optimise the building structure to better suit customers’ need ) 3. What is the current life cycle position of the industry? Maturity to shake-out * Within few years, it’s expected about 12% US retailing is done online or via mobile device, and this figure will be higher in Australia. * There will be fewer physical stores,
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2. Value chain Design S/C Project management Leasing & sales Property Management Refurbishment & redevelopment (Renovation of the shopping centre or optimise the building structure to better suit customers’ need ) 3. What is the current life cycle position of the industry? Maturity to shake-out • Within few years, it’s expected about 12% US retailing is done online or via mobile device, and this figure will be higher in Australia. • There will be fewer physical stores, which
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