The Old Way of Calculating Profit is Inefficient and Illogical - The Profit Formula® is a New and Better Way
24 Pages Posted: 23 Feb 2003 Last revised: 10 Jun 2016
Date Written: January 14, 2003
An asset is a name with a value on a line of the balance sheet. No more, no less. The existing profit calculation systems make an arithmetical difference between, for instance, non-monetary fixed assets and other assets, which is in flat contradiction with a logical approach. By doing so, profit calculation has been made intricate, and it thereby costs a lot of time, effort and money and what is found in the end doesn't justify this. With The Profit Formula® counting and calculating are reduced to an absolute minimum via a direct way to the outcome. A tremendous amount of money can be saved with regard to administration and fringe costs, also in case of pure nominalism.
Keywords: Trading Profits, Holding Gains, Principles, Conventions, Capital Maintenance Concepts and Concepts of Value, There is no such thing as a free machine
JEL Classification: M41
Suggested Citation: Suggested Citation