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N. K. Gupta posted an Question
September 18, 2021 • 11:39 am 30 points
  • UGC NET
  • Commerce

What is the meaning of inflation accounting in simple

what is the meaning of inflation accounting in simple

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  • Rucha rajesh shingvekar Best Answer

    Inflation accounting is the practice of adjusting financial statements according to price indexes. ... The IFRS defines hyperinflation as prices, interest, and wages linked to a price index rising 100% or more cumulatively over three years. Inflation accounting refers to the process of adjusting the financial statements of a company to show the real financial position of the company during inflationary period. It is a special accounting technique that is used during the period of high inflation.

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    sorry sir but i not understand please explain in short and simple

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