In this article we will discuss about Historical Cost Accounting (HCA):- 1. Meaning of Historical Cost Accounting 2. Benefits of Historical Cost Accounting 3. Limitations. Meaning of Historical Cost Accounting: Historical Cost Accounting (HCA), also known as conventional accounting, record transactions appearing in both the balance sheet and the profit and loss account in monetary amounts which reflect their historical [...]
FAS 33 (USA) and SSAP 16 (UK) differ in the following respects: 1. General Requirements: SSAP 16 calls for a complete profit and loss account and complete balance sheet on a current cost basis that may be presented as supplementary information or as the "main accounts with supplementary historical cost accounts" or as "the only accounts accompanied by adequate historical [...]
In this article we will discuss about inflation accounting in USA, UK and India. Inflation Accounting in United States of America (USA): Accounting bodies in USA have been concerned with the impact of price changes on financial reporting since many years ago However, considerable attention could be given to inflation accounting only in 1969 when the Accounting Principles Board (APB) [...]