IDEAS home Printed from https://ideas.repec.org/a/blg/reveco/vsupplementy2012i1p791-798.html
   My bibliography  Save this article

The Impact Of Inflation On The Results Of Economic Entities

Author

Listed:
  • SUCIU Gheorghe
  • BARSAN-PIPU Nicolae
  • PUSCASU Ion

Abstract

In many countries, the primary financial statements are based on the historical cost, without taking into account the changes that occurred in the general level of prices or the increase in specific prices of assets held, excepting those cases in which the fixed assets and financial investments can be revalued. When using historical costs, the information is distorted, meaning it does not reflect clearly the events and the concepts of capital and maintenance of capital cannot be applied properly. In a hyperinflationary economy, high rates of inflation which occur for a long period of time, lead to the appearance of some problems which distort the data presented in the financial statements, and the ?real? profit includes a tax on ?inflation?, leading to the company`s decapitalization.

Suggested Citation

  • SUCIU Gheorghe & BARSAN-PIPU Nicolae & PUSCASU Ion, 2012. "The Impact Of Inflation On The Results Of Economic Entities," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 0(1), pages 791-798.
    • Handle: RePEc:blg:reveco:v:supplement:y:2012:i:1:p:791-798
    as

    Download full text from publisher

    File URL: http://economice.ulbsibiu.ro/revista.economica/archive/suplimente/Volume1-2012.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anthony Orji & Onyinye .I. Anthony-Orji & Joan C. Okafor, 2015. "Inflation And Unemployment Nexus In Nigeria: Another Test of the Phillips Curve," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(5), pages 766-778, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:blg:reveco:v:supplement:y:2012:i:1:p:791-798. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Eduard Alexandru Stoica (email available below). General contact details of provider: https://edirc.repec.org/data/feulbro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.