EJOURNALSEJOURNALS

International journal of Business, Management and AccountingInternational journal of Business, Management and Accounting

The article discusses the issues of and the methods of adjusting financial statements under inflationary conditions. It is well known that the main purpose of accounting is to assess the economic performance of business entities. At the same time, inflation directly affects the unit of measurement - that is, the currency unit. Therefore, it is natural that inflation has a significant impact on the accounting system. This impact becomes especially evident when accounting records are traditionally maintained based on the actual (nominal) value of assets and liabilities at the time of their acquisition.

The article highlights the importance of adjusting financial statements to reflect the impact of inflation, particularly in hyperinflationary economies.It emphasizes the need for reliable and comparable data for informed decision-making by management, investors, and creditors.The transition to IFRS 29, involving restatement of financial statement items, requires professional competence and consistency in application.

Further research could explore the practical challenges faced by businesses in Uzbekistan when implementing IFRS 29, specifically focusing on the selection of appropriate price indices and the restatement of financial statements. Additionally, a comparative study analyzing the effectiveness of different inflation accounting methods in various economic contexts would be valuable. Finally, investigating the impact of inflation accounting on investment decisions and capital allocation in emerging markets like Uzbekistan could provide insights for policymakers and investors, contributing to more transparent and efficient financial reporting practices.

Read online
File size579.65 KB
Pages9
DMCAReport

Related /

ads-block-test