Current Cost Accounting and its Revival in Ed-82 - a Reappraisal

Posted: 31 Mar 1999

See all articles by Russell Poskitt

Russell Poskitt

Independent

Susan Newberry

The University of Sydney Business School

Abstract

This paper reviews previous research on New Zealand's 1980s current cost accounting (CCA) experiment and re-examines the reasons given for its failure. It notes a link between the business community's support for and then rejection of the standard, and the government's consideration and then rejection of CCA for taxation and price control purposes. After CCA's demise the accounting profession adopted a set of concepts which suggested rejection of CCA principles in accounting. CCA principles have, however, been revived by New Zealand's light-handed regulatory regime for the pricing of infrastructural services. Despite the accounting profession's conceptual developments, ED-82 Accounting for Property, Plant and Equipment suggests that standard-setters are willing to oblige those who wish to extend CCA principles to financial reporting. This paper questions the appropriateness of this development.

JEL Classification: M41, M44

Suggested Citation

Poskitt, Russell and Newberry, Susan, Current Cost Accounting and its Revival in Ed-82 - a Reappraisal. Available at SSRN: https://ssrn.com/abstract=149895

Russell Poskitt

Independent

Susan Newberry (Contact Author)

The University of Sydney Business School ( email )

Cnr. of Codrington and Rose Streets
Sydney, NSW 2006
Australia

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