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Proposals for New Accounting Standards for Foreign Monetary Items

Author

  • Lars Oxelheim

Summary, in English

The purpose of this study was to propose and evaluate different methods for measuring and reporting exchange gains and losses on corporate monetary items. Focusing on the Swedish experience, the empirical validity of three laws/monetary relationships from economic theory were examined for currencies in the Swedish 'basket' for the period 1974–1981. The basic overall finding of the study was that a method based on the Purchasing Power Parity Theory appears generally superior to methods based on either Fisher's Open Relationship or the Interest Rate Parity Theory, and also superior to the currently favoured use of the closing rate.

Publishing year

1983

Language

English

Pages

257-288

Publication/Series

Journal of Business Finance & Accounting

Volume

10

Issue

4

Document type

Journal article

Publisher

Wiley-Blackwell

Topic

  • Economics and Business
  • Business Administration

Status

Published

ISBN/ISSN/Other

  • ISSN: 0306-686X