Inflation accounting in India: a case study of the Bharat Heavy Electricals Limited

Abstract

In the last decade, a considerable amount of research has been done justifying the need to introduce inflation accounting in reporting the financial results of a business unit. In this paper, I have reviewed the recent developments in inflation accounting and the role played by the accounting professional bodies in the U.K. and U.S.A. The role of our two accounting bodies in India has been one of dismay. In reporting Current Cost Accounts, Indian corporations have not been very forthcoming either. The BHEL is the only company which has been keeping up with the international developments. I