Advertisement

Constant Purchasing Power Accounting I—Concepts

  • Robert W. Scapens
Chapter
Part of the Studies in Finance and Accounting book series

Abstract

The Accounting Standards Steering Committee (A.S.S.C.) set out in their provisional Statement of Standard Accounting Practice No. 7 a method of preparing financial statements which includes adjustments for changes in the value of money. Although the value of money may rise as well as fall, the current conditions of continuing inflation have led to the contents of the statement being referred to as ‘inflation accounting’. However, the proposed accounting adjustments are also applicable during a period when the value of money is rising and prices are generally falling. For this reason, the term ‘price-level accounting’ may more aptly describe the nature of the statement.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Notes and Reference

  1. 6.
    Australian Accounting Standards Committee, ‘A Method of Accounting for Changes in the Purchasing Power of Money’, Preliminary Exposure Draft (December 1974).Google Scholar

Copyright information

© Robert W. Scapens 1977

Authors and Affiliations

  • Robert W. Scapens
    • 1
  1. 1.University of ManchesterUK

Personalised recommendations