Implimenting an Inflation Accounting System: A Case Study

Abstract

This article describes and analyses the experience of a large multi product and multiunit company in implementing a system of inflation accounting. Based on this analysis, suggestions for a company planning to implement a system of inflation accounting are developed. It is argued that in this non-statutory exercise the corporate office has to play a dominate and leading the role. It is advisable to have an implementation plan detailing the timing of initiating the exercise, allocation of key tasks between corporate office and the units, and a scheme for monitoring the progress of implementation.