Price Variation Accounting Mode and Its Enlightenment to China

The change of commodity prices affects the reliability and correlativity of the accounting information. On the basis of a simple comparative analysis of the three prevailing international accounting models for changing commodity prices, the domestic traditional methods for reducing the impacts of changing commodity prices upon accounting information are introduced. Since the traditional accounting method does not touch on the change of accounting model upon the commodity price change, it cannot reflect and eliminate the impacts of commodity price change upon accounting. Based on the analysis of the current accounting environment of commodity price change, an in-depth reflection is made upon the choice of the accounting model in the context of current changing commodity prices.