General-Price-Level-Adjusted Historical-Cost Statements and the Ratio-Scale View

FOUR DIFFICULTIES ARE IDENTIFIED THAT SUGGEST STRONGLY THAT THE RATIO-SCALE VIEW IS INVALID. THESE PROBLEM AREAS ARE THE OBJECTS, PROPERTY, OPERATIONS AND INDEX DIFFICULTIES. THE ANALYSIS IMPLIES THAT THERE IS REASON TO BE PESSIMISTIC ABOUT THE RELEVANCE OF THE NUMERICAL VALUES CONTAINED IN GPL STATEMENTS TO THE CONSTRUCTION AND THE CONFIRMATION OF A SCIENTIFIC THEORY OF ACCOUNTING. HOWEVER, SINCE THE ULTIMATE TEST OF THE RELEVANCE OF THESE VALUES MUST NECESSARILY BE RELATED TO WHETHER THEY FIT INTO A THEORY WHICH HAS SIGNIFICANT PREDICTIVE, EXPLANATORY AND DESCRIPTIVE POWERS, IT IS IMPOSSIBLE TO BE CERTAIN WHETHER THESE VALUES ARE IRRELEVANT. REFERENCES.