[OPE-L:1987] Re: depreciation, profits, and subjectivity

Chai-on Lee (conlee@chonnam.chonnam.ac.kr)
Fri, 26 Apr 1996 22:05:16 -0700

[ show plain text ]

From: Michael Perelman
Michael Perelman said:
I was moved to make this point by the discussion by Fred, Andrew, et al.
about the exact moment of capital revaluations. The sluggish valuation
process allows for the existence of fictitious capital.
This fictitious capital -- or what I think of as fictitious value -- can
persist over long periods of time, often until a crisis wipes them out.

Neither subjectively nor by the market, the valuation of capital is carried
out. But it is capable of being executed at any time, and there is a
certain objective rule and method in accountancy. Accountants make such
valuations with pleasure at any time. There are some laws and orders about

Am I obtrusive?