Inflation accounting is a method of accounting that adjusts financial statements to account for the effects of inflation. It is used when the value of money changes over time due to inflation or deflation. The purpose of inflation accounting is to provide more accurate and meaningful financial information to users of financial statements.

The statement that is not correct regarding inflation accounting is option 'D' - After some time the numbers cannot be compared easily. This statement is incorrect because one of the main objectives of inflation accounting is to make financial numbers comparable over time.

Explanation:

1. Purpose of Inflation Accounting:
- Inflation accounting is used to adjust financial statements to reflect changes in the purchasing power of money.
- It aims to provide more accurate and meaningful information to users of financial statements by eliminating the distortions caused by inflation.

2. Adjustments in Inflation Accounting:
- Inflation accounting involves adjusting historical cost figures to reflect changes in the general price level.
- This is done by using price indexes, such as the Consumer Price Index (CPI), to adjust the values of assets, liabilities, revenues, and expenses.

3. Benefits of Inflation Accounting:
- Provides a more accurate representation of the financial position and performance of a company.
- Helps in comparing financial statements over time, as the effects of inflation are taken into account.
- Allows for better decision-making by users of financial statements, as they can assess the real economic value of assets and liabilities.

4. Challenges of Inflation Accounting:
- Inflation accounting requires reliable and up-to-date price indexes to make accurate adjustments.
- It can be complex and time-consuming to implement, especially for companies operating in countries with high inflation rates.
- It may result in arbitrary profits or losses, as the adjustments made are based on general price level changes rather than specific changes in individual prices.

5. Acceptance by Tax Officials:
- Option 'A' states that tax officials do not accept inflation accounting. This statement is partly correct.
- In some countries, tax authorities may not accept the adjustments made in inflation accounting for tax purposes, as they prefer the use of historical cost figures.

6. Concept of Objectivity:
- Option 'C' states that financial statements lose their credibility because the concept of objectivity is violated. This statement is partly correct.
- Inflation accounting involves making subjective judgments and estimates in adjusting the financial figures, which may raise concerns about the objectivity of the information presented.

In conclusion, the statement that is not correct regarding inflation accounting is option 'D', as inflation accounting aims to make financial numbers comparable over time by adjusting for the effects of inflation.