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inflation accounting (E3, M4)<br />Accounts measuring costs, revenue, profit and loss at constant prices. Major professional bodies of accountants have produced conventions to deal with the effects of inflation so that a true and accurate description of the financial state of an enterprise is achieved. The current cost approach is used in the UK, Australia, Canada and New Zealand. In the USA, the SECURITIES AND EXCHANGE COMMISSION requires large corporations to use the replacement cost approach, stating both specific price changes and movements in the general price index.<br /><em>See also:</em> current cost accounting; Sandilands Report <br /><em>Reference</em><br />Tweedie, D.P. and Whittington, G. (1984) The Debate on Inflation Accounting, Cambridge: Cambridge University Press.
administered inflation (E3)<br />INFLATION brought about by firms increasing the profit mark-up on their products; a form of COST-PUSH INFLATION.<br /><em>See also:</em> mark-up pricing
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