Misplaced Pages

#152847

23-616: In southern Italy, the oncia (plural oncie or once ) or onza (pl. onze ) was a unit of account during the Middle Ages and later a gold coin minted between 1732 and 1860. It was also minted in the southern Italian territories of the Spanish Empire , and a silver coin of the same value was minted by the Knights of Malta . The name is derived from the ancient Roman uncia . It may sometimes be translated ounce . In

46-465: A series of monetary conventions starting in 1354, initially at a standard practically identical to the Florentine florin (98% gold, 3.54 grams). By 1419, the weight had been slightly reduced (to 3.51 grams) and the alloy was substantially reduced (to 79% gold). By 1626, the alloy had been slightly reduced again (to 77% gold), while the weight was more substantially reduced (to 3.240 grams). In 1409,

69-413: A somewhat meaningful interpretation of prices, costs, and profits, so that an entity can monitor its own performance. It allows shareholders to make sense of its past performance and have an idea of its future profitability. The use of money, as a relatively stable unit of measure, can tend to drive market economies toward efficiency . Historically, prices were often given in a dominant currency used as

92-403: A standard unit of account. After being compiled, these figures are often used to guide governmental policy; especially monetary and fiscal policy. In calculating the opportunity cost of a policy, a standard unit of account allows for the creation of a composite good . A composite good is a theoretical abstraction that represents an aggregation of all other opportunities that are not realized by

115-432: A unit of account in managerial accounting enables firms to choose between activities that yield the highest profit. The unit of account in financial accounting refers to the words used to describe the specific assets and liabilities that are reported in financial statements rather than the units used to measure them. That is, unit of account refers to the object of recognition or display whereas unit of measure refers to

138-568: A unit of account until the introduction of notes and coins in 2002. Unit of account is the main way of calculating a carrier or ship owner's liability in relation to carriage of goods contracts in which the Hague-Visby Rules apply. In economics, a standard unit of account is used for statistical purposes to describe economic activity. Indexes such as GDP and the CPI are so broad in their scope that compiling them would be impossible without

161-578: A unit of account, but transactions actually settled by using a variety of coins that were available, and often goods, all converted into their value in the unit of account. Many international transactions continue to be settled in this way, using a national value (most often expressed in the US dollar or euro ) but with the actual settlement in something else. In historical cost accounting, currencies are assumed to be perfectly stable in real value during non- hyperinflationary conditions under in terms of which

184-700: Is based on the stable measuring unit assumption. The unit of account in economics suffers from the pitfall of not being stable in real value over time because money is generally not perfectly stable in real value during inflation and deflation. Inflation destroys the assumption that the real value of the unit of account is stable which is the basis of classic accountancy . In such circumstances, historical values registered in accountancy books become heterogeneous amounts measured in different units. The use of such data under traditional accounting methods without previous correction can lead to confusing — (or even meaningless) — results. Historic examples of units of measure include

207-434: The lira and the florin often overlapped; where the lira was used for smaller transactions (wages, food purchases), the florin was for larger transactions such as those used in dowries, international trade or for tax-related matters. The first minting of the florin occurred in 1252. At the time the value of the florin was equal to the lira , but by 1500 the florin had appreciated; seven lire amounted to one florin. In

230-699: The French franc and the electoral rheingulden all became pounds (240 denari) of account. Units of account would often survive over 100 years despite the original coins changing composition and availability (e.g. the Castilian maravedi ). A modern unit of account is the European Currency Unit , used in the European Union from 1979 to 1998; its replacement in 1999, the Euro , was also just

253-525: The livre tournois , used in France from 1302 to 1794 whether or not livre coins were minted. In the 14th century Naples used the grossi gigliati, and Bohemia used the Prague groschen . (2021) At any one time there might be two or three units of account in one region based on the local base, silver and sometimes gold coins, and each often expressed in L.S.D units in ratio 240:12:1. The Florentine gold florin ,

SECTION 10

#1732791931153

276-630: The 14th century, about a 150 European states and local coin-issuing authorities made their own copies of the florin. The most important of these was the Hungarian forint , because the Kingdom of Hungary was a major source of European gold (until mining in the New World began to contribute to the supply in the 16th and 17th centuries, most of the gold used in Europe came from Africa ). The design of

299-602: The Hungarian forints, St. John was re-labelled St. Ladislaus , an early Christian king and patron saint of Hungary, and a battle axe substituted for the original's sceptre. Gradually the image became more regal looking. The term florin was borrowed elsewhere in Europe. A variant of the florin was the Rheingulden , minted by several German states encompassing the commercial centers of the Rhein ( Rhine ) River valley, under

322-679: The Rheingulden standard (at the time 91.7% gold) was adopted for the Holy Roman Empire's Reichsgulden . The Dutch guilder is symbolized as Fl. or ƒ , which means florijn (florin). The English coin first issued in 1344 by Edward III of England is also known as a florin. Originally valued at six shillings, it was composed of 108 grains (6.99828 grams ) of gold with a purity of 23 carats and 3 + 1 ⁄ 2 grains (or 23 + 7 ⁄ 8 carats) – and more recently (minted between 1849-1967 although circulating alongside

345-523: The coin comes from the Giglio bottonato ( it ), the floral emblem of the city, which is represented at the head of the coin. The fiorino d'oro (gold florin) was used in the Republic of Florence and was the first European gold coin struck in sufficient quantities since the 7th century to play a significant commercial role. The florin was recognised across large parts of Europe. The territorial usage of

368-447: The decimal ten pence coin until 1993 when it was withdrawn due to a resizing) relating to a British pre-decimal silver coin (later nickel silver ) also known as a two shilling (or two bob) "bit" (abbreviation 2/-) worth 24 pence or one-tenth of a pound. In Ireland , a silver florin coin (worth one-tenth of an Irish pound , with Irish inscription flóirín ) was minted between 1928 and 1943; it became cupronickel in 1943 and

391-493: The first good. It allows an economic decision's benefits to be weighed against the costs of all other possible goods in that society, without having to refer to any directly. Often, this is most easily accomplished with money. The use of a unit of account in financial accounting , according to the American business model, allows investors to invest capital into those companies that provide the highest rate of return . The use of

414-519: The medieval kingdoms of Naples and Sicily , one oncia was equivalent to 30 tarì , 600 grani and 3600 denari (pennies). Conventionally, a sum of money is indicated by numbers of oncie , tarì , grani and denari separated by full stops, thus 2.2.15.1 indicates 2 oncie , two tarì , 15 grani and 1 denaro . Although the oncia was never minted in the Middle Ages, it was the basic unit of account. The lesser denominations were minted, as

437-509: The original Florentine florins was the distinctive fleur-de-lis badge of the city on one side and on the other a standing and facing figure of St. John the Baptist wearing a cilice . On other countries' florins, the inscriptions were changed (from "Florentia" around the fleur, and the name of the saint on the other), and local heraldic devices were substituted for the fleur-de-lis. Later, other figures were often substituted for St. John. On

460-457: The stable measuring unit assumption is applied. The Daily Consumer Price Index (Daily CPI) – or a monetized daily indexed unit of account – can be used to index monetary values on a daily basis when it is required to maintain the purchasing power or real value of monetary values constant during inflation and deflation. Money is rarely perfectly stable in real value which is the fundamental problem with traditional historical cost accounting which

483-411: The tool for measuring it. Unit of measure and unit of account are sometimes treated as synonyms in financial accounting and economics. Unit of measure in financial accounting refers to the monetary unit to be used; that is, whether it should be nominal units of money as opposed to units that are adjusted for changes in purchasing power over time. Florin (Italian coin) The Florentine florin

SECTION 20

#1732791931153

506-494: Was a gold coin (in Italian Fiorino d'oro ) struck from 1252 to 1533 with no significant change in its design or metal content standard during that time. It had 54 grains (3.499 grams, 0.1125 troy ounces ) of nominally pure or 'fine' gold with a purchasing power difficult to estimate (and variable) but ranging according to social grouping and perspective from approximately 140 to 1,000 modern US dollars . The name of

529-426: Was the ducat (six of which equalled an oncia ) and the carlino (60 to the oncia ). Frederick II introduced the augustalis , which was a quarter of an oncia . Unit of account Money acts as a standard measure and a common denomination of trade. It is thus a basis for quoting and bargaining of prices. It is necessary for developing efficient accounting systems. Unit of account in economics allows

#152847