Price Changes
Since financial statements are using monetary unit measurement, they are reflecting price changes. Price changes occur when the prices of goods and services are different from what they were previously in the same market.
There are three types of price changes: general price changes that reflect increases or decreases in the value of monetary unit; specific price changes occur when there is changes in the particular product; and relative price changes reflect the change in the price of one commodity relative to the prices of all goods and services (Hendriksen, 1992: 407)