The Valuation of Inventories During the So-Called “Golden Age” of Italian Accounting

Abstract

The research aims to reconstruct the evolution of theories on the valuation of inventories during the so-called “golden age” of Italian accounting. The analyzed period, which goes from 1850 to 1900, represents a significant phase for Italian history, since some fundamental concepts handed down to the present day were placed in it. The research used a historical-descriptive method based on the analysis of the major works published in the period under observation and, through the examination of the literature, reconstructed the existence of three significant historical phases, distinct not only according to the theories on valuations of inventories proposed in each period, but also on the basis of the different regulatory context in force. The research has highlighted how the evolution of the theories developed by accounting between 1850 and 1900 showed alternating trends, passing from an initial phase (1850-1864) in which the doctrine identified specific criteria for evaluating inventories, to a phase of less attention to the evaluation problem (1865-1881), to finally reach (1882-1900) a complete and detailed treatment of the subject, through the formulation of concepts and principles highly similar to the current evaluation criteria.