The expression of units of currency in terms of a designated base year value.

This is done to account for inflation, and in so doing provide a more accurate currency value in terms of purchasing power. This becomes especially important when comparing the values of a currency between periods. The equation used to convert a currency amount to a constant dollar value is: Second year Constant Dollar=First Year Dollar Value*((CPI for First Year)/(CPI for Second Year)). A constant dollar value is denoted by C$ by the Financial Accounting Standards Board.