Thesis (M.S.)--Massachusetts Institute of Technology, Alfred P. Sloan School of Management, 1980. / MICROFICHE COPY AVAILABLE IN ARCHIVES AND DEWEY. / Bibliography: leaves 84-85. / by David Glenn Naugle. / M.S.

Thesis (PhD (Business Management))--University of Stellenbosch, 1992. / ENGLISH ABSTRACT: In this dissertation the association between inflation-adjusted data and the behaviour of share prices is investigated. The primary purpose of this investigation is to make a contribution to the body of knowledge regarding share price behaviour, and more specifically with respect to the relationship between inflation accounting and the share market. The disclosure of inflation-adjusted data is not mandatory in South Africa, and few companies have disclosed supplementary current cost income statements. A somewhat larger number of companies make provision for inflation in their financial results by revaluing their assets and accounting for additional depreciation. Prior to 1984 a fair proportion of the companies listed on the Johannesburg Stock Exchange also used the LIFO method of inventory valuation. The disclosed inflation-adjusted data is very limited, necessitating the estimation of the inflation-adjusted data. To estimate the inflation adjustments, a number of inflation accounting models were developed based either on AC 201 or other suggestions found in the literature. These models were then applied to the financial results of listed industrial companies. In the first empirical analysis contained in this dissertation the inflation adjustments generated by the various models were compared to identify unique models for further use in the market related empirical work. From this analysis it was established that AC 201 is open to such a divergent interpretation that significantly different inflation adjustments are generated. From the literature reviewed, three research designs showed promise for application to the market related empirical analyses. The first design used was the event study which was used to evaluate the share market's reaction to the abolition of the tax benefits associated with the LIFO method of inventory valuation. The share market showed no significant reaction for a period of 21 weeks surrounding the announcement, making possible statements regarding the relative efficiency of the Johannesburg Stock Exchange impossible. It was, however, established that the research design used is very sensitive to sample formation, and it is recommended that special care should be used in market related studies to ensure that both operating and holding companies are not included in the same sample. The second research design used was the incremental information content design. Limited incremental information content was found in the inflation-adjusted income for companies which disclosed no inflation adjustments. For companies that did disclose some aspects of inflation accounting, the inflation-adjusted income was often the better explanatory variable of the residual share returns, but no incremental information content could be detected. Based on analyses performed on single years of data it was found that the inflation-adjusted income was as good an explanatory variable of the residual share returns as the historic cost variable. The final research design used was the income measurement perspective. It was found that in general the historic cost income behaved as expected, but the inflation adjustment to income seldom displayed any income measuring properties. The only inflation accounting model that displayed signs of income measurement properties contained as part of its adjustment unrealised holding gains on fixed assets. This could be a indication that the disclosure of unrealised holding gains could be useful. The lack of results found for AC 201 possibly points to its inadequacy. In general the relationship between the inflation-adjusted data and the share market was found to be very weak. / AFRIKAANSE OPSOMMING: In hierdie proefskrif word die verwantskap tussen inflasie-aangepaste data en die gedrag van aandeelpryse ondersoek. Die primere doel met hierdie studie is om by te dra tot die kennis oor die gedrag van aandeelpryse, en dan meer spesifiek met betrekking tot die verwantskap tussen inflasie-rekeningkunde en die aandelemark. In Suid-Afrika is dit nie verpligtend om inflasie-aangepaste data bekend te maak nie, en min maatskappye publiseer 'n aanvullende inkomstestaat van huidige koste. 'n Ietwat groter aantal maatskappye maak voorsiening vir inflasie in hul finansiele resultate deur hul bates te herwaardeer en addisionele waardevermindering af te skryf. Voor 1984 het 'n aantal maatskappye wat op die Johannesburgse Effektebeurs genoteer is, ook voorraad volgens die LIEU metode gewaardeer. Slegs beperkte inflasie-aangepaste data is dus beskikbaar, wat die skatting van sodanige data noodsaak. Om die inflasie-aangepaste data te kan skat, is 'n aantal inflasie-rekeningkunde modelle ontwikkel, op grond van of RE 201 of ander voorstelle in die literatuur. Hierdie modelle is daarna toegepas op die finansiele resultate van genoteerde nywerheidsmaatskappye. In die eerste empiriese ondersoek wat in hierdie proefskrif vervat is, is die inflasieaanpassings wat deur die onderskeie modelle gegenereer is, met mekaar vergelyk om te bepaal watter uniek is vir gebruik in die markverwante empiriese ondersoek wat volg. Met hierdie ondersoek is vasgestel dat RE 201 so uiteenlopend vertolk kan word dat inflasie-aanpassings wat statisties beduidend van mekaar verskil, gegenereer word. Uit die literatuur wat bestudeer is, blyk dit dat drie verskillende navorsingsontwerpe geskik vir toepassing in die markverwante ondersoeke is. Die eerste ontwerp wat gebruik is, is die gebeurtenisstudie waarmee die effektebeurs se reaksie bepaal is op die afskaffing van die belastingvoordeel wat aan die LIEU-voorraadwaardasie gekoppel was. Die effektebeurs het gedurende die 21 weke rondom hierdie aankondiging geen betekenisvolle reaksie getoon nie. Dit maak enige afleidings oor die relatiewe doeltreffendheid van die effektebeurs onmoontlik. Daar is wel vasgestel dat die navorsingsontwerp baie sensitief vir die samestelling van die steekproef is. Dit word aanbeveel dat sorg gedra behoort te word dat 'n bedryfsmaatskappy nie saam met sy houermaatskappy in dieselfde steekproef opgeneem word nie. Die tweede navorsingsontwerp wat gebruik is, berus op die inkrementele inligtingsinhoud. Die inflasie-aangepaste inkomstesyfers van maatskappye wat geen aanpassings vir inflasie toon nie, bevat beperkte inkrementele inligting. Vir maatskappye wat wel inflasieaanpassings openbaar maak, is die inflasie-aangepaste inkomstesyfer dikwels die beste beskrywende veranderlike van die residuele aandeelopbrengste, maar geen inkrementele inligting kon gevind word nie. Uit ontledings wat op 'n jaarbasis uitgevoer is, kan daar afgelei word dat die inflasie-aangepaste inkomstesyfer net so 'n goeie beskrywende veranderlike van die residuele aandeelopbrengste as die historiesekoste-inkomstesyfer is. Die laaste navorsingsontwerp wat gebruik is, berus op die inkomstemetingsperspektief. In die algemeen is daar gevind dat die historiesekoste-inkomstesyfer volgens verwagting reageer, maar dat die inflasie-aanpassing selde enige inkomstemetingseienskappe bevat. Die enigste inflasie-rekeningkunde model wat tekens van inkomstemetingseienskappe toon, bevat ongerealiseerde houwinste op vaste bates as deel van sy regstelling. Dit kan beskou word as 'n teken dat die openbaarmaking van ongerealiseerde houwinste nuttig kan wees. Die gebrek aan betekenisvolle resultate vir RE 201 hou die moontlikheid in dat dit ontoereikend is. In die algemeen is gevind dat die verwantskap tussen inflasie-aangepaste data en die gedrag van aandele op die effektebeurs baie swak is.

"The purpose of this paper is to analyze the problem created by a rising price level as it affects accounting and to appraise in the light of the broad social responsibility of accounting certain proposals for giving effect to price-level changes in accounting statements"--Introduction. / Typescript. / "August, 1958." / "Submitted to the Graduate Council of Florida State University in partial fulfillment of the requirements for the degree of Master of Science." / Advisor: John E. Champion, Professor Directing Paper. / Includes bibliographical references.

In September, 1979, the Financial Accounting Standards Board issued FASB Statement No. 33, which required certain corporations to issue specified supplementary information based on constant dollars and current costs. This information is intended to show the impact of inflation on the reported earnings and capital of business enterprises. Opponents of Statement No. 33 claim that the required supplementary information is difficult to interpret and, therefore, will not be used. Proponents contend that the information is self-explanatory and would highlight the impact of inflation on the performance of business enterprises. Thus, they conclude the supplementary data will be useful to various user groups and will be used. This dissertation's primary objective was to determine whether the supplementary data will be used by financial analysts in the Dallas/Fort Worth and Houston regions in evaluating an enterprise's operating performance and its ability to maintain physical operating capability and the general purchasing power of financial capital.

Made available in DSpace on 2015-12-03T18:35:24Z (GMT). No. of bitstreams: 1 Anderson_da_Silva_Pinto.pdf: 593086 bytes, checksum: 0af63bcd9c696fd4ff30b43131d0442b (MD5) Previous issue date: 2012-11-27 / The systematic restatement that was prohibited by Law 9.249/95, allowed companies to recognize the effects of inflation in the accounting statements, thus enabling users to understand the effects of accounting that inflation generated in the asset and results of the companies. This paper aims to highlight the effects that the lack of indexation causes in equity in earnings and profitability of companies in the mining sector in the period 2006 to 2011, comparing the indicators of net income, shareholders' equity and return on equity extracted from the accounting statements determined in accordance with Brazilian Corporate Law and the accounting statements adjusted considering the effects of inflation over the period. The prohibition of the practice of restatement caused the accounting statements disclosed by companies in the mining sector do not recognize the effects of inflation, distorting the content of the information disclosed and as a consequence affecting the decision-making process of users of accounting. This is a descriptive quantitative, in which we used the methods of descriptive analysis and descriptive statistics to understand the behavior of indicators that were studied and to analyze the accounting statements of companies within the mining sector. Were collected and analyzed indicators of net income, shareholders' equity and return on equity, extracted from the accounting information disclosed in the Revista Exame Melhores e Maiores in the period from 2006 to 2011. Where significant differences were found in the values presented in accordance with Brazilian Corporate Law as compared with the figures considering the effects of inflation. The main results were that the lack of inflation adjustment in the accounting statements cause considerable distortions in the calculation of income for the period, the net asset value and profitability indicator in equity of companies in the mining sector. The distortions affect users of accounting in the process of choosing their investments and analysis of accounting information, as these users are making decisions through accounting statements do not adequately reflect the economic reality of companies in the mining sector. Conclude that the accounting practice of indexation for both corporate as managerial levels are relevant to avoid the distortions that are caused evidenced in equity, results and return on equity of companies in the mining sector, the non-recognition of inflation. / A sistem??tica da corre????o monet??ria que foi proibida pela Lei n. 9.249/95 permitia que as empresas reconhecessem os efeitos da infla????o nas demonstra????es cont??beis, possibilitando assim, aos usu??rios da contabilidade, conhecer os efeitos que a infla????o gerava no patrim??nio e nos resultados das empresas. O presente trabalho tem como objetivo evidenciar as consequ??ncias que a falta da corre????o monet??ria ocasiona no patrim??nio l??quido, no resultado do exerc??cio e na rentabilidade do patrim??nio l??quido das empresas do setor de minera????o brasileiro, no per??odo de 2006 a 2011, comparando os indicadores de lucro l??quido, do patrim??nio l??quido e da rentabilidade do patrim??nio l??quido extra??dos das demonstra????es cont??beis apuradas de acordo com a legisla????o societ??ria e as demonstra????es cont??beis ajustadas considerando os efeitos da infla????o no per??odo. A proibi????o da pr??tica da corre????o monet??ria fez com que as demonstra????es cont??beis divulgadas pelas empresas do setor de minera????o brasileiro n??o reconhe??am os efeitos da infla????o, distorcendo o conte??do das informa????es divulgadas e, como consequ??ncia, afetando o processo decis??rio dos usu??rios da contabilidade. Trata-se de uma pesquisa descritiva quantitativa, na qual foram utilizados os m??todos de an??lise descritiva e a estat??stica descritiva para se entender o comportamento dos indicadores que foram coletados das demonstra????es cont??beis das empresas pertencentes ao setor minera????o brasileiro. Este trabalho analisa os indicadores de lucro l??quido, do patrim??nio l??quido e da rentabilidade do patrim??nio l??quido, extra??dos das informa????es cont??beis divulgadas na revista Exame Maiores e Melhores, no per??odo de 2006 a 2011. Nos indicadores coletados, h?? diferen??as relevantes nos valores apresentados de acordo com a legisla????o societ??ria em compara????o com os valores apresentados considerando os efeitos da infla????o do per??odo. Os principais resultados alcan??ados foram que a falta da corre????o monet??ria nas demonstra????es cont??beis provocam distor????es consider??veis na apura????o do resultado do per??odo, no valor do patrim??nio l??quido e no indicador de rentabilidade do patrim??nio l??quido das empresas do setor de minera????o brasileiro. As distor????es afetam os usu??rios da contabilidade no processo de escolha dos seus investimentos e nas an??lises das informa????es cont??beis, pois estes usu??rios est??o tomando decis??es com base em demonstra????es cont??beis que n??o refletem adequadamente a realidade econ??mica das empresas do setor de minera????o brasileiro. Conclui-se que a pr??tica cont??bil da corre????o monet??ria, tanto para n??veis societ??rios quanto gerenciais, ?? relevante para evitar as distor????es evidenciadas que s??o causadas no patrim??nio l??quido, nos resultados e na rentabilidade do patrim??nio l??quido das empresas do setor de minera????o brasileiro, pelo n??o reconhecimento da infla????o.

The purpose of this study was to determine the informational value of FASB Statement No. 33 current cost disclosures using the analytical technique of industry-wide decomposition analysis. The industry-wide decomposition model was used to measure the informational content of both the historical cost balance sheets (reported in the firm's annual reports) and the current cost balance sheets (prepared from the current cost disclosures) of firms in the Electric Services and Retailers industries. The two measures were then compared to determine the informational value of FASB Statement No. 33 current cost disclosures.