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Real Value
 
hi there
i wonder about Real Value Accounting, can any one explain it to me
thanks
 
real value accounting is a complex term used to adjust the effect of inflation and related matters on profit. it can be calculated by using of Constant Item Purchasing Power Accounting (CIPPA)
 
ok. but for what it is used for? i read some material but not able to conclude any thing
 
It is long story and some how of no use. CIPPA accounting is done mostly for hi-inflation economy. people making investment want to know that whether profits are increased due to growth or due to inflation effect only. but it also has very long list of other factors
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