INFLATION ACCOUNTING #inflation A term popular in the area of corporate profit accounting. Basically, due to inflation the proft of firms/companies gets overstated. When a firm calculates its profits after adjusting the efects of current level of infation, this process is known as infation accounting. Such profits are the real profit of the firm which could be compared to a historic rate of infation (infation of the base year), too. SOURCE - Indian economy by Ramesh singh. 6.1K views05:30
