Dynamic Temporal Value Measurement Adjustment System (DTVMAS) - A Novel Paradigm for Resolving Temporal Heterogeneity in Balance Sheets

Purpose: Fundamental Problem: Traditional balance sheets, titled at a specific point in time (year/period-end), merely chronicle events by aggregating heterogeneous values - historical, current, and future creation dates - failing to present a true picture of the entity's financial position. Design/Methodology/Approach: To provide an accurate snapshot of the entity's financial position at year/period-end and enable correct ratios between assets/liabilities, while reflecting cumulative temporal value adjustments in Other Comprehensive Income (OCI), this system enhances shareholders' equity accuracy (closer to current share value). This enables precise information dissemination to shareholders and external users. Findings: The Dynamic Temporal Value Measurement Adjustment System (DTVMAS) achieves this by introducing Current Value Measurement Adjustment Factors (CVMAF). It classifies assets acquired in the same year/period with identical nature (using industry experts), converting fixed asset values to balance sheet date current values. CVMAF is defined as: - >۱ for past periods (inflation compensation), - =۱ for present, - <۱ for future periods (value discounting). Originality: DTVMAS reduces the book-value vs. current-value gap through CVMAF. By recognizing gains/losses from these adjustments in OCI (separate from current-year profit), it presents a realistic financial position, making it compatible with inflationary economies.

کلیدواژه ها:

Temporal Value Measurement ، CVMAF Factor ، Purchasing Power ، Dynamic Temporal Value ، Time-Adjusted Balance Sheet