The Practical Significance Of Price Changes In The Accounting And Research

As a kind of common economic phenomenon, changing price always has great effect on historical cost accounting system, which to some extent, hinders financial accounting performing its functions. The research of changing price accounting had ever gained great attention all over the world. With the worldwide decline of inflation rate, the research of changing price accounting gradually fades out. However, economic situation always changes a lot, we should not hold optimistic attitude blindly to the future economic tendency. So how to treat the influence of changing price, measure assets correctly, confirm profits, preserve capital, calculate and distribute profit rationally , guarantee providing true and reliable accounting information, evaluate management performance are still what accounting should take seriously.This article introduces the general condition of changing price and analyzes the effect acute changing price exerts on conventional accounting in detail. At this basis, this article analyses the emergence inevitability of changing price accounting, then introduces the main four changing price accounting models. Then this article summarizes the accounting methods of alleviating the effects of changing price and the development process of changing price accounting in China, then analyses the reasons why changing price accounting is not carried out in our country.Finally this article points out the practical significance of further researching changing price accounting, especially when it has not been a hot topic. Considering the practical condition, this article puts forward some ideas about how to apply the theories and thoughts of changing price accounting to practical accounting management work at current phase.