gearing adjustment

Show Summary Details

Quick Reference

In current cost accounting, an adjustment that reduces the charge to the owners for the effect of price changes on depreciation, stock, and working capital. It is justified on the grounds that a proportion of the extra financing is supplied by the loan capital of the business.

Subjects: Financial Institutions and Services — Accounting.

Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.