Inflation accounting, Accounting Basics

Assignment Help:

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.


Related Discussions:- Inflation accounting

Learning objectives of accounting theory, Q. Learning objectives of Account...

Q. Learning objectives of Accounting theory? - Discuss and Identify the underlying assumptions or else concepts of accounting. - Discuss and Identify the main principles of

Review, 1. State the equity equation. 2. Which account represents the begi...

1. State the equity equation. 2. Which account represents the beginning equity figure? 3. In which accounts are changes to equity recorded? 4. How do drawings affect the calculati

Explain the term - federal income tax, Federal income tax Except specif...

Federal income tax Except specifically exempted, all income (illegal and legal) is subject to personal income tax. Withholding depends on 1) employee's gross earnings, 2) emplo

Contract Account, contractee account is it an assets account or expenses Ac...

contractee account is it an assets account or expenses Account

Draw a stem-and-leaf plot for the data set, Draw a stem-and-leaf plot for t...

Draw a stem-and-leaf plot for the data set. (Enter numbers from smallest to largest separated by spaces. Enter NONE for stems with no values.)  Data set A: The annual wages of

calculate the gain or loss of company, During the tracking period, 18 Marc...

During the tracking period, 18 March to 21 April 2011, your team is to monitor the performance of the shares and the overall performance of the Australian share-market.  Can you ma

During the week ended may 15, During the week ended May 15, 2013, Scott Fai...

During the week ended May 15, 2013, Scott Fairchild worked 40 hours. His regular hourly rate is $31. Assume that his earnings are subject to social security tax at a rate of 6.20 p

Steps used in retail inventory method, Q. Steps used in retail inventory me...

Q. Steps used in retail inventory method? The retail inventory method approximation the cost of the ending inventory by applying a cost/retail price ratio to ending inventory s

Income statements and balance sheets, Income Statements and Balance Sheets ...

Income Statements and Balance Sheets Case study A brief outline of the firm and its industry is given, as well as a few tips for your attention. You are given three years

Measurement in financial statements, Q. Measurement in financial statements...

Q. Measurement in financial statements? In December 1984 the FASB issued Statement of Financial Accounting Concepts No. 5 The Recognition and Measurement in Financial Statement

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd