In an inflationary environment, the practice of inflation accounting has gained importance in order to ensure healthy financial statements, comparable financial data, the right decisions and the alignment of your financial strategy with new economic processes.
What is inflation accounting?
Inflation accounting is the process of re-calculating the non-monetary items in the financial statements by multiplying the relevant amounts to be taken into account in the inflation adjustment by the adjustment factor in order to reflect their purchasing power at the date of the financial statements.
What is the importance of automation in inflation accounting?
Automating the inflation accounting-related calculations using the state-of-the-art tools will not only ensure standardization of the calculations to be made throughout the process for companies, but will also facilitate working life by minimizing the working time that may arise due to repetitive calculations.
What is IAS 29 Financial Reporting in Hyperinflationary Economies (TAS29)?
In April 2001, the International Accounting Standards Board adopted the IAS 29 Financial Reporting in Hyperinflationary Economies, which had originally been issued by the International Accounting Standards Committee in July 1989.
This standard went on to be published in the Turkish Official Gazette on December 31, 2005 issue number 26040 as "TAS 29 Financial Reporting in Hyperinflationary Economies" thereby coming into force and effect in Turkey as of this date.