Off-campus UNL users: To download campus access dissertations, please use the following link to log into our proxy server with your NU ID and password. When you are done browsing please remember to return to this page and log out.
Non-UNL users: Please talk to your librarian about requesting this dissertation through interlibrary loan.
A NORMATIVE CAPITAL MAINTENANCE MODEL FOR DEPRECIABLE ASSETS PURCHASED FROM A FOREIGN COUNTRY DURING A TIME OF INFLATION
Abstract
The purpose of this dissertation is to develop a normative capital maintenance model for depreciable assets during a time of inflation. This model is developed on a stipulated physical capital maintenance concept that accumulated depreciation at the end of an asset's useful life should be equal to the funds required to replace the asset with a new one of comparable capacity. The soundness of this stipulation is supported by analyses of widely publicized theoretical models and promulgations of standards setting bodies in several countries. A key innovative factor in the model is provision for backlog depreciation as a charge against income. Backlog depreciation is the difference between the depreciation charges that would otherwise be made over the life of the asset and its net replacement cost. The model is developed first for a simple situation where depreciable assets are purchased from a local market. This permits demonstration of the efficacy of backlog depreciation and other somewhat innovative factors. Cognizance is then taken of the following features of the international trade for depreciable assets: (a) the country that is self-sufficient in depreciable assets does not exist in contemporary economic life, (b) different countries experience different inflation rates, and (c) the exchange rates between currencies fluctuate through time. The model is, accordingly, extended to cope with depreciable assets purchased from a foreign country by adding: (1) the price increase of the asset in a foreign market, and (2) the changes in the exchange rates between currencies as two vital dimensions in the model. Each of the following situations involving foreign exchange and acquisition of depreciable assets from another country is analyzed under the extended model: (1) forward exchange rate with fixed or certain prices, (2) forward exchange rate with uncertain changing prices, and (3) current spot trade with uncertain changing prices.
Subject Area
Business community
Recommended Citation
SHAABAN, HAMED ABD-EL-MOATY, "A NORMATIVE CAPITAL MAINTENANCE MODEL FOR DEPRECIABLE ASSETS PURCHASED FROM A FOREIGN COUNTRY DURING A TIME OF INFLATION" (1982). ETD collection for University of Nebraska-Lincoln. AAI8306510.
https://digitalcommons.unl.edu/dissertations/AAI8306510