{"id":45939,"date":"2024-04-15T22:05:13","date_gmt":"2024-04-15T22:05:13","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=45939"},"modified":"2024-04-15T22:05:13","modified_gmt":"2024-04-15T22:05:13","slug":"which-of-the-following-methods-of-inflation-accounting-has-been-proposed-by-sandilands-committee-of-u-k","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-methods-of-inflation-accounting-has-been-proposed-by-sandilands-committee-of-u-k\/","title":{"rendered":"Which of the following methods of inflation accounting has been proposed by Sandilands Committee of U.K.?"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;General price level method&#8221; option2=&#8221;Specific price level method&#8221; option3=&#8221;Current cost accounting method&#8221; option4=&#8221;Generally accepted accounting principles&#8221; correct=&#8221;option2&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>B. Specific price level method<\/strong><\/p>\n<p>The Sandilands Committee was a committee of inquiry set up by the UK government in 1974 to investigate the implications of inflation for financial reporting. The committee&#8217;s report, &#8220;Inflation Accounting&#8221;, was published in 1975.<\/p>\n<p>The committee recommended that companies should use the specific price level method of inflation accounting. This method measures the effects of inflation on the historical cost of assets and liabilities by restating them in terms of the purchasing power of the currency at the end of the reporting period.<\/p>\n<p>The other options are incorrect because:<\/p>\n<ul>\n<li>The general price level method measures the effects of inflation on the historical cost of assets and liabilities by restating them in terms of the general purchasing power of the currency over the period.<\/li>\n<li>Current cost accounting measures the effects of inflation on the historical cost of assets and liabilities by restating them in terms of the current cost of replacing them.<\/li>\n<li>Generally accepted accounting principles (GAAP) are a set of accounting standards that are used by companies to prepare their financial statements. GAAP do not specifically address the issue of inflation accounting.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;General price level method&#8221; option2=&#8221;Specific price level method&#8221; option3=&#8221;Current cost accounting method&#8221; option4=&#8221;Generally accepted accounting principles&#8221; correct=&#8221;option2&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-45939","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which of the following methods of inflation accounting has been proposed by Sandilands Committee of U.K.?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-methods-of-inflation-accounting-has-been-proposed-by-sandilands-committee-of-u-k\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which of the following methods of inflation accounting has been proposed by Sandilands Committee of U.K.?\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;General price level method&#8221; 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