The Price-Level Controversy: A Reply.

The article discusses accounting for price changes. Financial statements should list current value data due to the fact that accounting information is used in economic evaluation and decision making. Also, the terms of value for items on income statements should use the current prices for the period stated. The concept of income includes the increment in wealth resulting from the productive activities of actual transactions with revenue and cost flows using current prices. References to a change in balance sheet measures through the generalized purchasing power between two periods of time are not used in deriving income.