Current Cost Accounting "takes the consideration of one(s) Company's assets at the present replacement cost, instead of the price paid originally. Current costs accounts are drawn up by adjusting the historical value for inflation and the main adjustments such as depreciation." For example; if one were to buy a 'product' under the circumstances of the IFRS, the accountant would record the modern time renewal cost instead of the initial price.
"The difference between financial capital maintenance in nominal monetary units (traditional Historical Cost Accounting) and financial capital maintenance in unit of constant purchasing power, i.e. Constant Item Purchasing Power Accounting (CIPPA), is that the stable measuring units assumption is always implemented under HCA but [has never put into action] under CIPPA." For financial capital maintenance the capital is shown in the terms of nominal fiscal units, the profit represents the increase in capital over a certain