Attributability and Distributability of Profit to Shareholders: A Note

Attributability and Distributability of Profit to Shareholders: A Reply

“…The procedures we proposed are logically consistent, they are simpler than SSAP 16, and they accomplish the conceptual objective of SSAP 16 for the situations we analysed. Boussard (1985) acknowledges this, but he also claims that our procedures are inadequate for two other situations (pp. 274-5):…”

“…Our paper about profit attributable to shareholders (Sharp and Spires, 1983) has been the focus of some comments by Boussard (1985). The intent of our article was to propose some measurement procedures that are more consistent with the conceptual intent of SSAP 16's profit attributable to shareholders (i.e., the amount that could be distributed while maintaining the shareholders' proportion of the firm's operating capability).…”