Hyperinflation Reporting and Performance Assessment
Year: 1998
Type: preprint
Abstract: Generally accepted accounting principles are poorly adapted to describe economic reality for companies operating in hyperinflationary environments. Traditional reporting systems report large exchange gains or losses that are difficult to interpret, mismatch revenues and expenses, greatly overstate interest income and expense, and do not resolve the implicit interest problem. Financial statement users are thus provide an unreliable basis for, evaluation of a business. The transaction-based reporting model described here overcomes many of these deficiencies. Examination of reported numbers in disaggregated fashion is central to the model presented, showing that with a little additional effort conventional accounting data can be transformed into information useful to a range of financial statement users.
Source: SSRN Electronic Journal
Authors: Frederick D. S. Choi, Ronald R. Gunn
Institutions: National Bureau of Economic Research, New York University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2266926740