INFLATION ACCOUNTING: HOW JAPAN AND EUROPE CARS MARKET CARS’S PRICE MADE

Abstract

Indonesia as one of the developing Southeast Asian region which has the largest population of the region and is strongly influenced by the use of cars as a means of transportation. Small, medium, large and multinational companies each year always increase the number of cars as a means of transportation, as well as the consumption level of the community of car ownership in their activities. The dominance of Japanese and European car market in Indonesia possess unique characteristics of accounting that may be affected by foreign currency exchange rates, motor vehicle taxes, inflation accounting, or other causes which will be the object of observation that would like to note in this study. Exploration study on Japanese and European car market in some of car dealerships in Surabaya and Jakarta will be conducted to determine the price movement of new cars and used cars in big cities and then find out the level of car price inflation. How different is the historical cost and general price levels and purchasing power accounting is another explanation of the results of this research.