The correct answer is B and D only. Accounting for price level changes - Accounting for price-level changes, commonly known as inflation accounting, is a financial reporting technique that, based on the assumption of stable currency, records the effects of inflation on the financial statements that a firm produces and publishes at the end of the fiscal year. Important PointsThe following are the commonly accepted techniques for accounting for changes in price level - 1. Current Purchasing Power Method(CPP) - The values of various items in the balance sheet and profit and loss account are converted using this procedure using any recognised and approved general price index. This method accounts for changes in the value of products as a result of the overall price level, but it does not take individual item value changes into account. For the conversion of historical expenses, the Reserve Bank of India's consumer price index or wholesale pricing index can be used. 2. Current Cost Accounting Method(CCA) - The creation of financial statements using the current values of individual things rather than the historical or original costs is the current cost accounting technique. The current purchasing power technique can be replaced with the current cost accounting approach. The financial statements created using this technique give more accurate information and distinguish between gains attributable to changes in price levels and profits made through business operations. The strategy avoids overstating earnings and maintains capital because depreciation under CCA is provided on current costs. The influence of holding monetary things on the business's finances in terms of earnings and losses is also underlined.