Accounting for changing prices - Recent development

Abstract

With the rejection of ED-18 on July 6, 1977, the longest running epic of the financial world "Inflation Accounting" has come to a standstill where U.K. accounting profession is living with "An Interim Recommendation" and the U.S. (through its SEC requirements) is content with disclosure of fragmented and piecemeal information about replacement cost. Accounting profession in India seems to be watching the debate will all curiosity and excitement. I wonder whether the professional accounting bodies here are just playing the role of spectators or sitting on the fence watching the developments in other countries before adopting any particular method for correcting inflationary effect on our financial statements. Nevertheless, we cannot remain inactive too long.