ACCOUNTING SYSTEM IN TERMS OF INFLATION
ACCOUNTING SYSTEM IN TERMS OF INFLATION

Summary/Abstract: Currently, accounting is going through an evaluation process, talking about an "accounting of the future", and not a historical cost accounting. This means that assessing the value of the property and maintaining this value until the exit of the accounts are replaced with estimated value of estimated future benefits that may be generated by the company through the ownership of certain categories of goods. In a hyperinflationary economy, the inflation adjusted financial statements do not contravene the principles based on historical cost accounting, but rather complement them. If you were to continue presentation of financial performance and financial position at historical cost, provided that the money loses its value, would not be able to compare financial statements from year to year.

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