Philips’ application of current cost accounting until 1981

Abstract

The N.V. Philips’ Gloeilampenfabrieken has been applying current cost accounting since 1951. In doing so, various systems were chosen over the years. The example of Philips can therefore be seen as an empirical illustration of a number of ways according to which current cost accounting can be conducted against the background of the substantialistic maintenance of equity capital. This article (which is the first of two) focuses mainly on the systems of 1971 to 1981, as well as the financial implications associated with each system.

Keywords:

• current cost accounting
• deferred tax
• gearing ratio
• Philips Gloeilampenfabrieken
• revaluation of assets

Additional information

Notes on contributors

M A van Hoepen R.A.

Marians van Hoepen is a visiting professor in the Department of Business Economics at the University of Stellenbosch

I J Lambrechts

Izak Lambrechts is a professor in the Department of Business Economics at the University of Stellenbosch

F J Mostert

Frederik Mostert is a professor in the Department of Business Economics at the University of Stellenbosch