Difference between revisions of "The accounting concept of profit"
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| − | The accounting concept of profit | + | The accounting concept of profit is: |
| + | * Accrual based | ||
| + | * Hindsight oriented | ||
| + | * One period | ||
| + | * Only interest taken into account (not full cost of capital). | ||
| + | ** The cost of capital is ''severely'' underestimated in the accounting concept of profit | ||
| + | * Reporting to the outside world | ||
[[Category:finance]] | [[Category:finance]] | ||
Latest revision as of 19:26, 27 August 2020
The accounting concept of profit is:
- Accrual based
- Hindsight oriented
- One period
- Only interest taken into account (not full cost of capital).
- The cost of capital is severely underestimated in the accounting concept of profit
- Reporting to the outside world
