Original Articles

Philips’ application of current cost accounting until 1981

Published in: De Ratione
Volume 4 , issue 2 , 1990 , pages: 16–20

DOI: 10.1080/10108270.1990.11435018

Author(s): M A van Hoepen R.A. University of Stellenbosch, , I J Lambrechts University of Stellenbosch, , F J Mostert University of Stellenbosch,

Keywords: current cost accounting , deferred tax , gearing ratio , Philips Gloeilampenfabrieken , revaluation of assets

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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.

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