Inflation accounting, Accounting Basics

Inflation Accounting:

It is related  along with the adjustment in the value of assets that is current and fixed and of income in the light of changes in the price level. In a manner, this is related  with  the  overcoming of  restrictions  that  happen  in  financial  statements in account of the cost assumption which is recorded the assets at their original or historical cost and the assumption of stable monetary component, these are discussed in explanation in the next section. This aims at accurate the distortions in the reported outcomes caused through price level varies. Generally, rising prices during inflation have the distorting affect of overstating the profit.  Different approaches have been suggested to deal along with this issue.

If this topic of introduction of HRA and Inflation accounting provokes you to identify more regarding them, we suggest you pay attention to the audio programmed "Emerging Horizons in Accounting and Finance-Part II and III" that deal along with these two topics. You may also study "Money Measurement Idea" explained in the next section that has a bearing on inflation accounting.

Posted Date: 4/2/2013 6:52:18 AM | Location : United States

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

Write discussion on Inflation accounting
Your posts are moderated
Related Questions
Q. Illustrate lower-of-cost-or-market method? Procter & Gamble markets a broad range of paper, cleaning, beauty care, health care, food, laundry and beverage products around th

Define Accounting. Briefly explain the accounting concepts which guide the accountant at the recording stage.

A swap valuation method which involves summing and computing the present value of each and every future net settlement and would be required by the contract terms either future s

Q. Preparing a separate trial balance? As an alternative of preparing a separate trial balance as accountants uses the Trial Balance columns on a work sheet. The numbers and ti

Assignment: This assignment will be to describe and document the internal controls over a transaction cycle at a local business. A transaction cycle could be the sales process,

Q. Underlying assumptions or concepts of accounting? The major underlying assumptions or concepts of accounting are (a) business entity (b) going concern (continuity) (c) money

Honesty AL, CPA, is compiling financial statement of significant accounting policies, Honesty AL discovers that the method used to value inventory in the past was stated as "invent

Numbers and measurements are the language of business. Organizations look at results, expenses, quality levels, efficiencies, time, costs, etc. What measures does your department

A lobster catcher spends $12 500 per month to maintain a lobster boat.  He plans to catch an average of 20 days per month during lobster season.  For each day, he must allow approx