The correct answer is: C. Current Cost Accounting Method
The Sandilands Committee was a committee set up by the UK government in 1974 to investigate the implications of inflation for financial reporting. The Committee’s report, “The Inflation Accounting Committee: Report of the Inflation Accounting Committee to the Accounting Standards Steering Committee”, was published in 1975.
The Committee recommended that companies should adopt a current cost accounting method for financial reporting. This method would require companies to revalue their assets and liabilities to reflect their current cost, rather than their historical cost. The Committee also recommended that companies should disclose the effects of inflation on their financial statements.
The current cost accounting method was not widely adopted by companies in the UK. However, it did have a significant influence on the development of accounting standards in the UK and other countries.
The other options are incorrect because:
- The general price level method is a method of inflation accounting that measures the effects of inflation on the purchasing power of money.
- The specific price level method is a method of inflation accounting that measures the effects of inflation on the specific prices of assets and liabilities.
- Generally Accepted Accounting Principles (GAAP) are a set of accounting standards that are used in the United States. GAAP do not specifically address the issue of inflation accounting.