WHAT and HOW

about a dearly needed  New Mode of Accounting

In 9 simple steps: gross profit, net profit and fiscal profit.
To be found in Chapter 1 of the Reader 'Period Profit Measurement (IFRS+)'.

Set science: There is no solution to the problem of profit measurement.

" ... the accounting profession proves unable (or unwilling) to deal with the problem of inflation accounting (Tweedie/Whittington, 1984, p. 346)".

"We need to free ourselves from 'average' thinking (Philip Anderson, 1997)."

'Profit = Sales -/- Costs' is just one possible way. There can be more than just one principle, not slightly different but completely different. Measuring can often be done by different methods that are based on different principles. Set science, there is no solution, is de facto incorrect because the only proven thing at the most was and is that the followed road has a dead end. The solution is attainable via another road.

The old formula 'Profit = Sales -/- Costs' is simply not good enough. In case of period profit measurement, costs lack elegance and simplicity. They are too complicated and they have too many arbitrary parameters, e.g. depreciations, interest costs and tax burden.

The old formula yes indeed has a dead end. A paradigm shift is required. In fact, this is a plea to restore the paradigm that true balance sheets and the one only period profit and loss account - these accounts have lasted for centuries - should be permanently coupled together. They cannot miss one single money unit.

From zero on, after subtraction of all value differences and taxes, net period profit remains. This basic form is reducible to The Profit Formula^®.

There are three separate financial perspectives for any enterprise of which only one is visible i.e. the reality according to the accounts (IFRS and other practices) that are published in various countries.

There is also the fiscal reality, which is a secret between the taxpayer and the exchequer, and there is - top secret - the one and only right internal periodical account.

 New IFRS, Half-Way Up To The Profit Formula^®

To measure period profit is indeed possible - especially the top secret, scientifically correct internal profit - quite contrary to the existing general opinion. Profit measurement is exceptionally simple really by means of a new basic equation of profit measurement. Anybody can measure any reasonable period profit with The Profit Formula^®.

This E-course teaches you WHAT and HOW about The Profit Formula^®

Period profit, measured purely, threefold:

• Fiscal profit;
• Internal profit, inclusive of tax, interest charges, the conversion of foreign currencies and including all relevant factors; 
• External profit, what an enterprise likes to publish or has to publish according to law, rules and regulations (IFRS).