{"id":56384,"date":"2024-04-16T00:43:45","date_gmt":"2024-04-16T00:43:45","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=56384"},"modified":"2024-04-16T00:43:45","modified_gmt":"2024-04-16T00:43:45","slug":"which-one-of-the-following-methods-of-inflation-accounting-has-been-proposed-by-sandilands-committee-of-uk","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-methods-of-inflation-accounting-has-been-proposed-by-sandilands-committee-of-uk\/","title":{"rendered":"Which one of the following methods of Inflation Accounting has been proposed by Sandilands Committee of UK?"},"content":{"rendered":"

[amp_mcq option1=”General Price Level Method” option2=”Specific Price Level Method” option3=”Current Cost Accounting Method” option4=”Generally Accepted Accounting Principles” correct=”option3″]<\/p>\n

The correct answer is: C. Current Cost Accounting Method.<\/p>\n

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 Department of Trade and Industry and the Treasury”, was published in 1975.<\/p>\n

The Committee recommended that companies should adopt a current cost accounting (CCA) system for financial reporting. CCA is a system of accounting that measures the current cost of assets and liabilities, and the current cost of goods sold and services provided. This information is then used to calculate a company’s current cost profit and loss account and balance sheet.<\/p>\n

The Committee’s recommendations were not implemented in full, but CCA has been adopted by some companies in the UK.<\/p>\n

The other options are incorrect because:<\/p>\n