inflation accounting


inflation accounting
A method of accounting that, unlike historical-cost accounting, attempts to take account of the fact that a monetary unit (e. g. the pound sterling) does not have a constant value; because of the effects of inflation, successive accounts expressed in that unit do not necessarily give a fair view of the trend of profits. The principal methods of dealing with inflation have been current-cost accounting and current purchasing power accounting

Big dictionary of business and management. 2014.