The application of EEI in Iranian nationalized industries (Ph.D. Thesis)

There is significant academic research into the concept of interest adjusted accounting statements within capitalist societies, particularly on high levels of cost of capital that have existed during the past decade. Professor John R. Grinyer has developed a model (Earned Economic Income, EEI) that integrates interest adjustments with matched costs to provide accounting signals that are consistent with the Net Terminal Value or Net Present Value models under conventionally adopted assumptions. This thesis evaluates the effectiveness of Grinyer's model to the financial control of Iranian nationalized industries operating under an Islamic economy in which interest is forbidden. The main conclusions of this research are that: EEI is appropriate for evaluating Islamic economies, EEI produces more useful information for users of financial statements than the HCA system, and that the EEI method of allocation, particularly depreciation, is based on an economic logic and is verifiable.