Measurement problems in global financial reporting: The need for a stable composite currency

Nikolai V. Hovanov, James W. Kolari, Mikhail V. Sokolov

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review


This paper extends previous work by Ijiri (1995) by proposing the use of a stable composite currency in global financial reporting. Ijiri argues that transnational corporations should report financial statements using a composite currency rather than individual home currencies to avoid currency-dependent results. We propose a composite currency comprised of national currencies of different countries that is stable in value over time. Consistent with Ijiri, transnational corporations would benefit from a stable benchmark for measuring accounting values.

Original languageEnglish
Title of host publicationInternational Accounting in the 21st Century
PublisherNova Science Publishers, Inc.
Number of pages16
ISBN (Print)9781608760183
StatePublished - 1 Dec 2011

Scopus subject areas

  • Business, Management and Accounting(all)
  • Social Sciences(all)


  • Composite currency
  • Currency invariance
  • Exchange rates
  • Foreign currency translation
  • Global financial reporting
  • Reporting currency
  • Stable aggregate currency


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