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March 18, 2026The Accounting Review

Discounted Cash Flows, Price Level Adjustments and Expectations.

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Authors

HBHarold Bierman

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Overview

This article examines price level adjustments impacting investment value measures, suggesting nuances in decision making.

Key Points

  • The article aims to explore how price-level adjustments affect the valuation of investments when inflation expectations are variable.
  • Analyzes the implications of price-level adjusted financial data
  • Considers both anticipated and unanticipated inflation scenarios
  • Discusses the concept of double counting in asset valuation
  • Evaluates the relationship between adjusted measures and investment value
  • Price-level adjustments can distort value measures when inflation is anticipated.
  • Adjustment factors lead to potential double counting in asset depreciation.
  • For decision utility, adjustments must align with decision-makers' past inflation expectations.

Cite This Study

Harold Bierman (1971) studied this question.

synapsesocial.com/papers/69ba426d4e9516ffd37a29e9https://doi.org/10.2308/tar-4503807
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Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1Discounted Cash Flows, Price- Level Adjustments and Expectations: A Comment.1972
  2. 2Discounted Cash Flows, Price Level Adjustments and Expectations: A Comment.1972
  3. 3Expected and Unexpected Price Level Changes.1971
  4. 4Discounted Cash Flows, Price-Level Adjustments and Expectations: A Reply.1972
  5. 5A TECHNIQUE TO ADJUST FINANCIAL STATEMENT DATA FOR CHANGING PRICE LEVELS.1960