Professional accountancy bodies the world over generally agree that inflation may become so great that conventional financial statements lose much of their significance and price level adjusted statements become more meaningful Since domestic rates of inflation vary significantly from country to co...

Although it is generally conceded in principle that price leveladjusted financial statements are mor ...

Professional accountancy bodies the world over generally agree that inflation may become so great that conventional financial

Question:

Professional accountancy bodies the world over generally agree that inflation may become so great that conventional lose much of their significance and price-level adjusted statements become more meaningful. Since domestic rates of inflation vary significantly from country to country, at what point do price-level adjusted become more meaningful? How does one determine whether the benefits of price-level adjusted accounting information exceed its costs?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...