TRANSLATOR SIMULATION SOFTWARE

The Translator is a practical tool to help management, investors, and regulators with the needed transition to the New Economy Accounting that handles intangible assets.

We strongly recommend that, before running simulations, you read the following:
Bartley J. Madden and Donn DeMuro. 2024. “Bridging the Gap Between Accounting Returns and Economic Returns.” SSRN working paper and currently under review at a journal.

The Translator simulation software uses a Python interface connected to a comprehensive calculation engine that coordinates economic inputs, which drive long-term performance of the simulated firm. Detailed financial statements are calculated consistent with a selected inflation environment.

The key objective is to compare time series of known internal rates of return on each year’s investments—labeled economic returns—with a time series of accounting returns (RONA, ROIC, etc.) calculated from balance sheets and income statements. Users can easily change the simulated firm’s asset composition (tangible and intangible assets).

Here is a useful CHECKLIST, “Essential Steps for First-time Translator Users.”

Click here for TRANSLATOR INSTALLATION INSTRUCTIONS.

For questions regarding the above checklist and download instructions, email mdtranslator@demuro.org

After our SSRN working paper is published in a journal, we will decide on the issue of open access for the source code.