Prepare your financial statements using real data, by seamlessly integrating with Detaysoft's fully automated Inflation Accounting Solution Suite.
Use our suite, which is fully compatible with SAP ERP systems to convert non-monetary values and convert them into accurate financial data using inflation accounting.
Inflation accounting involves calculating the value of non-monetary assets to account for changes in their purchasing power at the time the financial statements are prepared. By removing the negative impact of inflation on financial statements, a true balance sheet can be achieved. Using inflation accounting, the actual profit or loss on non-monetary assets resulting from high inflation can be determined, allowing for more accurate financial reporting.
Implementation of inflation accounting helps determine the actual profit and loss in non-monetary values due to high inflation, thus enabling the calculation of accurate financial key figures.
According to the Turkish Accounting Standard 29 (TMS29) on Financial Reporting in Hyperinflationary Economies, it is not meaningful or useful to report the results of operations or financial position in local currency without restatement when operating in a hyperinflationary economy. Money loses its purchasing power at such a rate that comparisons of transactional amounts or other accounting entries will be misleading, even if taking place within the same accounting period.