A system designed to adjust purchase and cost accounting for changes in prices over time. The more usual convention is historic cost accounting.
A method of reflecting the effects of changing prices on the business trading account. This includes the calculation of a depreciation charge based on the gross current value of the fixed assets. The resultant CCA trading profit can be compared to the CCA capital employed to produce a 'return on capital employed CCA'
An accounting methodology, where assets are valued and depreciated according to their current replacement cost. Typically this will be the cost of a Modern Equivalent Asset (MEA).
The valuing of assets, stock, raw materials etc. at current market value as opposed to its historical cost .
System designed to adjust accounting for changes in prices that affect a company's assets. The more usual convention is historic cost accounting.