What question did this study set out to answer?

The reply aims to clarify the author's views on discounted cash flows and the role of price-level adjustments in accounting.

March 18, 2026

Discounted Cash Flows, Price-Level Adjustments and Expectations: A Reply.

Puntos clave

The reply aims to clarify the author's views on discounted cash flows and the role of price-level adjustments in accounting.
Discussion of price-level adjustments compared to traditional cost information
Analysis of accounting objectives regarding real asset maintenance
Comparison of different income figures ($317 vs. $87)
Defends price-level adjustments as valid translations of cost information
Critiques the notion that accounting's primary goal is to maintain real assets
Highlights significant discrepancies between nominal and price-level adjusted incomes

Resumen

Abstract Presents a reply by Thomas R. Dyckman to the author's article on "Discounted Cash Flows, Price-Level Adjustments and Expectations. " Information on price-level adjustments that have generally been defended as translations of cost information; Discussion on objective of accounting, which was not to maintain the real assets of the firm; Comparison of 317 income to a price-level adjusted income of 87.

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Discussion

Journals

The Accounting Review

Institutions

Cornell University

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