Nakala asilia - Kiingereza - For accounting records maintained ...

For accounting records maintained in historical cost terms, non-monetary balance sheet items are restated to current monetary units by applying a general price index. Monetary items need no restatement as they are already expressed in monetary units current at the balance sheet date. each item in the income statement needs to be restated by applying the change in the general price index from the date when that item was initially recorded.