Accounting for inflation, accounting, Basic Statistics

Accounting for inflation
Inflation sales is a term reporting a range of sales systems designed to correct problems that comes from traditional cost sales in the use of inflation. Inflation sales is used in nations around the world suffering from high inflation or hyperinflation For example, in nations around the world suffering from hyperinflation the Worldwide Accounting Expectations Panel needs business fiscal reports to be altered for changes in buying power using a price catalog.
Under a traditional cost-based system of sales, inflation causes two primary problems. First, many of the traditional statistics showing on fiscal reports are not financially appropriate because prices have modified since they were received. Second, since the statistics on fiscal reports signify dollars consumed at different points of time and, in turn, incorporate different volumes of buying energy, they are simply not preservative. Hence, including cash of $10,000 presented on January 31, 2002, with $10,000 which represents the price of area obtained in 1955 (when the price range was considerably lower) is a doubtful function because of the considerably different amount of buying energy showed by the two statistics.
Inflation sales are not fair value sales. Inflation sales, also called cost range sales, are similar to transforming fiscal reports into another currency using an exchange rate. Under some (not all) inflation sales models, traditional expenditures are converted to price-level altered expenditures using general or specific cost spiders.
Posted Date: 2/8/2012 6:17:58 AM | Location : United States







Related Discussions:- Accounting for inflation, accounting, Assignment Help, Ask Question on Accounting for inflation, accounting, Get Answer, Expert's Help, Accounting for inflation, accounting Discussions

Write discussion on Accounting for inflation, accounting
Your posts are moderated
Related Questions
I am Hussain and I have done master in Statistics. Currently I am doing Mphil Statistics from Pakistan. I want to get online Statistics Tutor job. So contact with me as soon as pos

A professor is interested in whether there is a gap in counseling students' statistics competency scores between 1) those who have never taken any statistics course, 2) those who h

Give certain creative assignment for freshers of accounting

According to de Broglie hypothesis and Heinsberg’s uncertainty principle, if and electron is to exist inside the nucleus, it should posses energy ranging from 20 MeV to 200 MeV. B


what is the basic difference between seasonal variation and cyclical variation

I need help on writing a paper about this title

Ask question #MinimumAgency revenues. An economic consultant was retained by a large employment agency in a metropolitan area to develop a regression model for predicting monthly a


What is a Business-type activity Reported in the government-wide financial statements. Financed in whole or in part by fees charged to external parties for goods or services that