New here? Get 10% OFF your first order! Your discount code is NEW10OFF Order now
Sign in
US:
1-800-380-2909
Chat Now 24/7

Examples and Samples

Inflation Accounting in the System of Modern Accounting

Definition, major tasks and problems of inflation accounting

Inflation accounting mostly deals with 2 principal issues. On one hand, it is a complex of financial reporting procedures, used for recording the results of inflation in this or that commercial structure, based on the axiom that the currency, referred to in accounting statements, is stable. These financial statements are prepared and published by the company at the end of the financial year. Since in quite a significant number of countries hyperinflation prevents from using this scheme, inflation accounting adjustments mostly depend on the purchasing power of the consumers.
On the other hand, apart from just recording and observing inflation dependant problems, inflation accounting offers a range of arrangements, designed to solve the issues, arising from hyperinflation and its results.

Historical background

The beginning of inflation accounting goes back to the early 20th century, when accountants of the USA and UK for the first time started to observe and discuss the effects inflation produces on financial statements, and introduced the theory of index number and the notion of purchasing power. Further on, starting from the times of the Great Depression, in many countries the inflation accounting principles were used in financial reports to reflect the inflation in them. A great number of companies started to create and publish price-level adjusted statements, instead of cost-based financial statements, used earlier. In many countries the principles of inflation accounting are very popular nowadays.

Main principles of inflation accounting

The main principle of the inflation accounting can be described as follows. An accountant takes the current value and adjusts it for…

We know how difficult it is to write an essay.

Get this FREE whitepaper on "How to Write an Essay" right away and sign up for our special offers.
By submitting your email you give consent to receive promo emails from us.
Thank you for downloading our white paper! This guide will help you write essays! Stay tuned with Writemypapers.org!

Testimonials

I believe that your work is exceptional and I highly appreciate your assistance in writing my essay. Now it will certainly meet the expectations of my professor!
Paul, CO 1 2 3 4
I usually don't use custom writing paper service like this, but I was in a pinch. You guys are great! All my questions were answered in a timely manner and now I know what to do if any problems with academic writing arise - ask you for help! Thanks a bunch, you saved my neck!!!
Steve, NJ 1 2 3 4 5
View All Testimonials
Want to place an
order via the phone?
It's free