References
- For example see H. Bierman, Jr., ‘Depreciable Assets—Timing of Expense Recognition’, The Accounting Review, October 1961, pp. 613–618 and F. K. Wright, ‘Towards a General Theory of Depreciation,’ Journal of Accounting Research, Spring 1964, pp. 80–90. A. Kraus and R. J. Heufner in ‘Cash Flow Patterns and the Choice of a Depreciation Method’, in the Bell Journal of Economics and Management Science, Spring 1972, pp. 316–342 define the cash flow patterns implied by different depreciation methods.
- ‘A Note on the Cash-Flow Approach to Valuation and Depreciation of Productive Assets’, Journal of Financial and Quantitative Analysis, June 1972, pp. 1841–1846, concludes that cash flows and the depreciation of an asset are dependent but explicitly assumes that the cash flows are constant through time and implicitly assumes that if the cash flows are not constant the good-will associated with the asset will be depreciated.
- For a description of the difficulties associated with matching specific assets and their benefits see A. L. Thomas, The Allocation Problem, American Accounting Association Studies in Accounting Research, 3, 1969
- Chambers , R. J. 1966 . Accounting, Evaluation and Economic Behaviour , 218 New Jersey : Prentice-Hall . states. The current cash equivalents of the assets of a going concern are the sums obtainable in the short-run in the ordinary course of business; that is, market resale prices in the short-run. Chambers, p. 92, discusses replacement cost and decides against its usefulness in asset accounting. Y. Goldschmidt, and S. Smidt, ‘Valuing the firm's Durable Assets for Managerial Information’, Accounting Review April 1969, 328 recommend the use of current market values for internal decisions and controls
- Closed form expressions for G can be derived that incorporate different growth (or decay) rate assumptions.
- Ijiri , Y. and Jaedicke , R. July 1966 . “ ‘Reliability and Objectivity of Accounting Measurements’ ” . In The Accounting Review July , 474 – 483 . A.A.A. A Statement of Basic Accounting Theory, The American Accounting Association, 1966 for reinforcement of this point of view.