Data on Impact of Inflation Proposed
Investors of large public companies may find a new item in annual reports starting in 1080ÛÓconsumer price index averages for five consecutive years, along with data on inflationary impacts on corporate sales and profits.</br></br>Inflationary measurements are included in proposed accounting disclosure standards made public yesterday by the Financial Accounting Standards Board, following a study of the issue that started last '-ear.</br></br>The proposed changes would be required only for public corporations with inventories, plant and equipment of less than S125 million and total assets of under SI billion, although other companies would be encouraged to follow the new rules. .Most ol the nation's 200 largest industrial linns have assets topping SI billion.</br></br>\rcording to Donald .1 Kirk, chairman of the accounting board, financial information based soleh on historical-cosi data ÛÏno longer adequately portrays the economic events and position of business enterprises, unless the information somehow can be made to reflect continuing inflation and changing prices.Û</br></br>He told the annual Securities and Exchange Commission conference of the American Institute of Certified Public Accountants here yesterday that information called for in the new rules emphasizes a measurement of assets owned by a business whereas an existing SEC ruling focuses on assets that would replace those owned ii replacement took place currently.