What can I say to my peer to add to the conversation: Critical thinking: The advantages of inflation accounting include the fact that a business's data (and current profitability) will be more realistic since current prices will be reflected on financial statements, and it can make it easier to compare current data to historical data, since inflation will be taken into account (Reiter & Song, 2018). The disadvantages of inflation accounting include the potential for the numbers on the financial statement to be irrelevant due to the change in prices, and these numbers represent dollars spent at different points in time (Reiter & Song, 2018). This may mean that financial statements frequently need to be edited to reflect changes in pricing