|
|
|
|
Title: |
The Algebra of Inflation Accounting |
| Author: |
Tybout, James |
| Author
Affiliation: |
Georgetown U
and World Bank |
| Source: |
International Economic Journal, Summer 1988, v. 2, no. 2, pp. 83-100 |
|
Publication Date: |
Summer 1988 |
|
Abstract: |
This paper develops algebraic
representations of the various possible distortions that inflation can
introduce in financial statements, and of the associated corrections
that have been developed by accountants. Adjustments to balance sheets
and income statements are presented for two basic cases: general
inflation, and inflation cum changing relative prices. Empirical
evidence concerning the impact of these adjustments is reviewed, and it
is noted that when inflation rates are substantial, the change in
accounting figures can be quite dramatic. |
|
