INFLUENCE OF INFLATION PROCESSES ON FINANCIAL RESULTS OF ACTIVITIES OF A BUSINESS ENTITY

В статье использована методика расчета показателей финансовой отчетности компании с целью оценки ее деятельности в условиях инфляции. Учет инфляции на финансовые результаты хозяйствующих субъектов важен для повышения топ-менеджментом управленческих решений. Для проведения анализа выявлены основные финансовые показатели. Базой методики анализа влияния инфляции на финансовые результаты, предложенной в статье, явилась разбивка активов и обязательств на денежные и неденежные. При анализе применена модель баланса прироста/ снижения активов и пассивов Ендовицкого Д.А. В качестве объекта исследования выбраны финансовые показатели ОАО «Грознефть». The article uses the methodology for calculating the indicators of the company’s financial statements in order to assess its activities in the context of inflation. Accounting for inflation on the financial results of business entities is important to improve management decisions by top management. For the analysis, the main financial indicators were identified. The basis of the methodology for analyzing the impact of inflation on financial results, proposed in the article, was the breakdown of assets and liabilities into monetary and non-monetary. In the analysis, the model of the balance of increase / decrease in assets and liabilities of Endovitskiy D. A. was applied. Financial indicators of OJSC “Grozneft” were selected as the object of research.

The global problem of inflation and need for inflation adjusted-financial reporting

Research background: Inflation, a macroeconomic phenomenon, may lead to an inaccurate presentation of financial data included in the financial statements, which otherwise should present a relevant and reliable information on financial health of the company. Purpose of the article: The purpose of the article is to point out the relevance and quality of data contained in the financial statements in the context of existence of inflationary pressure in the economy, and thus point out the importance of inflation accounting in the practice of business entities in the current situation (and not only in hyperinflation economics). Methods: In accordance with the purpose and the theoretical nature of the article, there will be preferably used the method of analysis and comparison of existing literature, method of opinion confrontation, method of synthesis and generalization. The subject of the analysis will be principally scientific sources dating from the 70s of last century to the present and IAS 29. Findings & Value added: The comprehensive elaboration of the issue in question from a theoretical point of view is a basic prerequisite for the carrying out the empirical research in conditions of Slovakia, pointing to its pros/cons and possible obstructions of its implementation in the process of financial reporting under current economic situation that except other is characterized by a general rise in the prices of economic goods, while inflationary pressures are currently being seen as a worldwide problem.

Effects of inflation accounting on organizational decisions and financial performance in South African retail stores

The inflation accounting technique allows a business to show or have a sensible picture of their gains due to present cost coordinates with present revenues. Thus, the effects of inflation accounting on organizational decisions and financial performance of Kwa-Zulu Natal retail stores were evaluated in this study. The study used a quantitative research method. A total of 161 completed questionnaires were received from respondents in the selected 20 listed stores in Kwa-Zulu Natal. Thus, the Exploratory Factor Analysis and linear regressions were employed in this study. The empirical study reveals how inflation accounting significantly impacts organizational decisions and financial performance of the retail business with such coefficients (F (1, 159) = 49.269, p < .0005; F (1, 159) = 28.959, p < .0005). The findings of this study highlighted positive relationships between the variables that were used. Thus, the study recommends that retail stores always consider inflation changes and apply inflation accounting techniques to make adjustments to produce more accurate results in their financial statements. Heated discussions now surround the basis of financial performance measurement via historical cost accounting. This influences their decision making and financial performance positively.

Effects of inflation accounting on the financial performance of retail stores in KwaZulu-Natal, South Africa

This thesis has been executed in South Africa. The research conductor intended to investigate the effects of inflation accounting on the performance of retail stores in Kwa-Zulu Natal, South Africa. The study used a mixture of openended and closed-ended questions on the questionnaire, combining quantitative and qualitative approaches in research. A total of 200 questionnaires were administered to 5 respondents per store in each of the two different branches of the 20 stores in Kwa-Zulu Natal listed on the Johannesburg Stock Exchange. The investigator used primary data to collect information and the Statistical Package for Social Sciences program to code and analyse data. The Explanatory Factor Analysis and Linear regressions were also employed in this study. The empirical study showed the impact of businesses preparing their financial statements on a historical cost basis and the different issues affecting the financial performance of the retail business. The outcome of the research highlighted positive relationships between the variables used. This study’s findings corroborated prior research findings. As the inflation rate increases, the more noticeable it becomes on the financial statements. Suggestions to resolve some of these concerns are mentioned in the study. If retailers consider these recommendations, hopefully more stores will increase their financial performance and the accuracy of the results.

Penerapan Analisis Portofolio Saham dalam Rangka Optimalisasi Return dan Minimlisasi Risiko pada Perusahaan Blue Chips

A financial accounting established by a company is the financial accounting that is going on the basis of previous events with the stable prices assumption. The truth of the excess of costs such as historical cost on the real transaction can be tested and proved by objective evidences, so that the financial accounting formed on the basis of historical cost is believable to be audited well. In fact, the change of price always happens and moreover it is inclined to rise. In other word, there will be inflation. Related with the fact, the historical cost concept applied in the financial accounting is judged to give less information to make a decision. The objectives of the study are to describe the inflation of accounting treatment by using General Price Level Accounting (GPLA) and Current Cost Accounting (CCA) methods as an additional report rather than the conventional financial accounting as the main report, and to know the additional financial accounting. The methods used are General Price Level Accounting (GPLA) and Current Cost Accounting (CCA) methods. In conclusion, the inflation accounting as an additional information is very useful for the financial accounting users to make economics decision. Furthermore, it also benefits in order to maintain the capital as the first period so that the continuity of company’s activity runs well