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.
Real Terms Accounting refers to an accounting method that adjusts financial statements for inflation to reflect the real value of money over time, providing a more accurate representation of an entity's financial position.
