Limitations of Historical Cost Accounting Information under Inflationary Conditions: A Theoretical Study | ||
| مجلة البحوث التجارية | ||
| Article 7, Volume 42, Issue 4, October 2020, Pages 3-22 PDF (576.71 K) | ||
| Document Type: تجاریة کل ما یتعلق بالعلوم التجاریة | ||
| DOI: 10.21608/zcom.2020.132844 | ||
| Authors | ||
| أحمد محمد زامل; أحمد هاني بحيري; دينا علي عبدالحميد حفني* | ||
| قسم المحاسبة، کلية التجارة، جامعة الزقازيق، مصر | ||
| Abstract | ||
| Abstract: This study discusses the limitations of historical cost accounting information under inflationary conditions by introducing a review of the previous literature on inflation accounting. The study concludes that historical-cost financial statements prepared underinflationary conditions could be misleading. Furthermore, inflation impairs the financial accounting role a basis for decision-making. Hence, the need for the adjustment of the historical cost financialstatements to reflect currenteconomic realities becomes inevitable. | ||
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