Current Purchasing Power Accounting is an accounting method that adjusts financial statements for changes in the general price level to maintain the purchasing power of shareholders' capital.
A comprehensive look at inflation accounting, its definition, examples, related terms, FAQs, online resources, and suggested books for further studies.
Real Terms Accounting (RTA) is a system of accounting where the effects of changing prices are measured by their impact on a company's financial capital, to ensure its value remains constant in real terms. This involves assessing assets at their current cost and defining profit as any surplus after maintaining shareholders' equity.
A committee led by Sir Francis Sandilands, established in 1975 by the UK Government to explore the appropriate methodologies for accounting the effects of inflation in company financial statements.
