- = CCAA form of accounting in which the approach to capital maintenance is based on maintaining the operating capability of a business. Assets are valued at their deprival value, which is the loss that a business would suffer if it were to be deprived of the use of the asset. This may be the replacement cost of the asset, its net realizable value, or its economic value to the business. Current-cost accounting ensures that a business maintains its operating capacity by separating holding gains from operating profits, thereby preventing them being distributed to shareholders. The current-cost accounting profit figure is derived by making a number of adjustments to the historical-cost accounting profit and loss account: these are the cost of sales adjustment, depreciation adjustment, monetary working-capital adjustment, and the gearing adjustment. The current-cost reserve in the balance sheet is used to ‘collect’ the current cost adjustments. This method of accounting was used widely in the UK in the late 1970s and early 1980s, when inflation was high; it was not popular, however, and as inflation has reduced it has been largely abandoned. Statement of Standard Accounting Practice 16, Current Cost Accounting, was issued in March 1980 but withdrawn in April 1988.
Accounting dictionary. 2014.
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current cost accounting — ➔ accounting * * * current cost accounting UK US noun [U] ► ACCOUNTING CURRENT VALUE ACCOUNTING(Cf. ↑current value accounting) … Financial and business terms
current-cost accounting — CCA A form of accounting in which the approach to capital maintenance is based on maintaining the operating capability of a business. Assets are valued at their value to the business, which is the loss that a business would suffer if it were to… … Big dictionary of business and management
current cost accounting — /ˌkʌrənt kɒst əˌkaυntɪŋ/ noun a method of accounting which notes the cost of replacing assets at current prices, rather than valuing assets at their original cost. Abbr CCA … Marketing dictionary in english
current cost accounting — /ˌkʌrənt kɒst əˌkaυntɪŋ/ noun a method of accounting which notes the cost of replacing assets at current prices, rather than valuing assets at their original cost. Abbreviation CCA … Dictionary of banking and finance
current-cost accounting — Fin accounting based on the cost of items at the time of the financial statement … The ultimate business dictionary
current cost accounting — … Useful english dictionary
Учет по восстановительной стоимости (CURRENT COST ACCOUNTING) — Метод измерения и учета активов и расходов, связанных с их использованием или реализацией, по их текущей или меньшей восстановительной стоимости на дату составления баланса, либо на дату использования или реализации … Словарь терминов по управленческому учету
current value accounting — ➔ accounting * * * current value accounting UK US noun [U] (also current cost accounting, also fair value accounting) ► ACCOUNTING a method of accounting based on the cost of replacing assets at the prices that would be paid now, rather than at… … Financial and business terms
current-value accounting — An accounting method that takes account of changes in specific prices rather than changes in the general price level. Assets can be valued at their net realizable value, current replacement cost, or net present value – or a combination of these … Accounting dictionary
current-cost operating profit — Using current cost accounting, the amount remaining after the cost of sales adjustment, depreciation adjustment, and working capital adjustment have been made to the conventional accounting profit … Accounting dictionary