Published by:
Harvard Business Publishing
Length: 16 pages
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Abstract
Although corporate executives show great dissatisfaction with the SEC''s recent efforts to account for the effects of inflation on their companies, they are unenthusiastic about any of the several other methods of inflation accounting suggested by the Financial Accounting Standards Board and other bodies. The author examines some of the reasons for business''s negative attitude and, through an analysis of current approaches to inflation accounting, shows why use of one of the methods would benefit business by clarifying the effects of inflation in the public mind.
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Abstract
Although corporate executives show great dissatisfaction with the SEC''s recent efforts to account for the effects of inflation on their companies, they are unenthusiastic about any of the several other methods of inflation accounting suggested by the Financial Accounting Standards Board and other bodies. The author examines some of the reasons for business''s negative attitude and, through an analysis of current approaches to inflation accounting, shows why use of one of the methods would benefit business by clarifying the effects of inflation in the public mind.