The inflation accounting technique allows a business to show or have a sensible picture of their gains due to present cost coordinates with present revenues. Thus, the effects of inflation accounting on organizational decisions of Indian retail stores were evaluated in this study. The study used a qualitative research method. The findings of this study highlighted positive relationships between the variables that were used. Thus, the study recommends that retail stores always consider inflation changes and apply inflation accounting techniques to make adjustments to produce more accurate results in their financial statements. Heated discussions now surround the basis of financial performance measurement via historical cost accounting. This influences their decision making and financial performance positively.
Keywords inflation, historical cost, accounting, financial statements, Exploratory Factor Analysis, Bombay stock exchange, India.
Anurag Verma1, Heena Gupta2, Manish Kumar3, Shailendra Kumar Gautam4, Krishna Pal Singh5*