What question did this study set out to answer?

The aim is to evaluate why projectability should be a criterion for income determination schemes based on its relevance to investor decisions.

Projectability as a Criterion for Income Determination Methods.

View Full Paper

Ask AI

Bookmark

Authors

This article analyzes how projectability affects income determination methods, suggesting implications for investors.

The aim is to evaluate why projectability should be a criterion for income determination schemes based on its relevance to investor decisions.
Analyzed arguments surrounding projectability and income prediction as criteria for acceptance of income determination methods.
Explored neo-classical theory relating to value and present value of expected future cash flows.
Examined the indeterminate nature of projectable income and its relation to future cash flows.
Found that income is considered an immutable concept in the context of present value theory.
Identified that the conditions linking income to future cash flows remain largely unspecified, causing uncertainty in their functional status.
Emphasized that projectable income meanings are crucial for security analysis but lack clear definitions.

Joseph G. Louderback (1971) studied this question.

View Full Paper

Ask AI

Bookmark