Showing papers on "Accounting period published in 1996"
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TL;DR: In this article, the authors compared income inequality and income mobility in the Scandinavian countries and the United States during the 1980's and found that inequality is greater in the US than in the Nordic countries and that the ranking of countries with respect to inequality remains unchanged when the accounting period of income is extended from one to 11 years.
Abstract: This paper compares income inequality and income mobility in the Scandinavian countries and the United States during the 1980's. The results demonstrate that inequality is greater in the United States than in the Scandinavian countries and that the ranking of countries with respect to inequality remains unchanged when the accounting period of income is extended from one to 11 years. The pattern of mobility turns out to be remarkably similar despite major differences in labor market and social policies between the Scandinavian countries and the United States.
18 citations
01 Jan 1996
TL;DR: In this article, exchange rates used in translating the financial statements of foreign subsidiaries may depreciate or appreciate substantially over a given accounting period, which will result in considerable exchange losses (gains) that will clearly play havoc with what might otherwise be a smooth income stream from foreign operations.
Abstract: Exchange rates used in translating the financial statements of foreign subsidiaries may depreciate or appreciate substantially over a given accounting period. Short of net zero exposures on a currency-by-currency basis, such fluctuations in exchange rates will generally result in considerable exchange losses (gains) that will clearly play havoc with what might otherwise be a smooth income stream from foreign operations. Translation losses will also reduce shareholders’ equity and therefore impact the debt-equity ratio of the firm. As the leverage ratio deteriorates, the firm will find its cost of debt financing increasing and/or its access to financial markets restricted.