General Price Level Adjusted Accounting
Historical accounting assumes that monetary unit is stable or that the changes in the monetary unit are immaterial (Suwardjono, 1994). But it can not be denied that purchasing power of money is decreased continuously. General purchasing power was based on the ability of monetary unit to buy products or services. When the price of products or services increased
(inflation), the general purchasing power will decrease. Because of financial statement are based on historical cost, the information reflected different time of transaction. The general price level accounting tried to correct the situation.