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A Note on the Discounted Present Value Concept

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Published
<mark>Journal publication date</mark>31/01/1977
<mark>Journal</mark>The Accounting Review
Issue number1
Volume52
Number of pages4
Pages (from-to)186-189
Publication StatusPublished
<mark>Original language</mark>English

Abstract

The discounted present value concept plays an important part in account- ing theory, often being viewed as the ideal concept of value. There Is, though, a school of thought which, while recognizing the importance of the concept in decision making, argues that the primary function of financial accounting is in the assessment of achieve- ments. It also argues that this indicates a need for ex-post measures which are con- ceptually distinct from discounted present value. This note complements their work by arguing that accountants do not have a comparative advantage in the determination of discounted present value for investors and that this task should be left to the stock market.