A note on accounting during inflation

The paper suggests that the extensive debate over the question of whether to use a consumer price index or a specific index (or replacement costs) to adjust historic accounts is approaching the problem in the wrong way. There are several relevant concepts of income which should be reported and the relevant index differs according to the income concept reported. It is proposed that companies should publish figures for four different concepts of income and that, where specific indices are required, these should be specific to each company.