were paid far in excess of adjusted earnings, and the stable cash dividend actually de-
clined in terms of its purchasing power. Although Exhibits 20.4 through 20.6 repre-
sent an example rather than results of an actual company, the characteristics cited
above were representative for firms reporting under FAS No. 33.
20.7 U.S. INFLATION ADJUSTMENTS 20 • 15In Thousands of Dollars,
Except for Per Share Amounts
Year ended December 31
20X6 20X5 20X4 20X3 20X2Total revenue
As reported $275,500 $239,800 $219,100 $194,800 $193,100
Adjusted for general inflationa $275,500 $247,500 $240,000 $235,500 $265,000
Income (loss) from operations
As reported 22,995 11,097 4,756 9,977 11,847
Adjusted for specific price
changesa 4,839 1,660 (2,102) (4,663) 1,261
Purchasing power gain from
holding net monetary liabilitiesa 2,449 7,027 5,432 1,247 6,375
Excess of increase in specific
prices of assets over increase
in the general price levela 20,458 2,292 3,853 8,597 3,777
Foreign currency translation
adjustment
As reported (295) (276) (396) (138) 76
Adjusted for specific price
changesa (624) (386) (454) (293) 127
Net assets at year-end
As reported 47,700 28,000 20,179 18,819 11,980
Adjusted for specific price
changesb 92,027 67,905 60,409 56,966 55,705
Per share information:
Income (loss) from operations
As reported $15.33 $7.40 $3.17 $6.65 $7.90
Adjusted for specific price
changesa 3.23 1.11 (1.40) (3.11) .84
Cash dividends declared
As reported 2.00 2.00 2.00 2.00 2.00
Adjusted for general inflationa 2.00 2.06 2.19 2.42 2.75
Market price at year-end
As reported 36 38 41 23 25
Adjusted for general inflationa 35 39 43 27 32
Average consumer price indexc 298.4 289.1 272.4 246.8 217.4
aIn average 20X6 dollars.
bNet assets adjusted for specific price changes include inventory and property, plant, and
equipment at current cost and all other items as they are reported in the primary financial
statements. No adjustment has been made for the lower tax basis applicable to the current
cost amounts included in net assets.
cFor purposes of this illustration, although the years for which information has been provided
are nonspecific, the actual 20X2–20X6 average index numbers have been applied.
Exhibit 20.6. Five-year Comparison of Selected Financial Data.