Abstract
The basis accounting is considered in this article which questions the fundamental tradition of the annual cyclic approach. The author considers that inflation accounting (which itself is a challenge to traditional methods) must be considered in this context. Further the underlying assumptions made in order to arrive at profit utilising historic cost (for which inflation accounting would make substitutions) are also questioned. Emphasis is placed on the distorting effect of the annual taxation system in accounting at present. The conclusion reached is that accounting methods could well be changed in an industrial society and that inflation accounting as such should not be introduced as ancillary or by way of supplement to an accounting system on the traditional basis.
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