[OPE-L:7887] valuation of constant capital

From: gerald_a_levy (gerald_a_levy@msn.com)
Date: Fri Nov 01 2002 - 19:52:41 EST

Re Tony T's [7885]:

Thanks for answering my previous questions, Tony.  A further
question -- if you don't mind:

> First, remember that 'constant capital' is not a category in traditional 
accounting; we might 'reach' for a connection to 'Fixed Capital', but we 
need to be wary in doing that.  In conventional accounting, the valuation 
rules are quite different (and somewhat diverse, but they often begin with 
historical cost). < 

Well, of course, we agree that c is not a category in traditional accounting.
You suggest that in conventional accounting, the valuation of fixed capital 
"often begin with historical cost".   OK,  but do you think that in the presence
of technological change that (constant) fixed  capital should be valued at 
historical cost or at current reproduction cost?   From your perspective, what 
would be your concerns re these alternative ways of valuing (constant) fixed 
capital?  Do you have a position on how Marx valued (constant) fixed

In solidarity, Jerry

PS Re: 
> but few would share the kind of 'bookkeeping-centric' idea of accounting that your comparisons and discussion betrays.   <
Well, I guess I thoiught that it was OK to address concerns about bookkeeping
methods when having a discussion with a Marxist who is an accountant.  I
certeainly didn't intend to be 'bookkeeping-centric'.  

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