User:Foggy Morning/Notes
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Inflation accounting
Software example from SAP Inflation accounting
- Restate G/L accounts and open payables and receivables for inflation (general and specific price-level changes)
- Revaluate assets, including inventory
Income statement general price-level adjustment (Wolk p.5)
| 2001 | 2002 | 2003 | Total | |
|---|---|---|---|---|
| Revenue | 33,000 | 36,302 | 39,931 | 109,233 |
| Depreciation | 30,000 | 31,500 (a) | 33,000 (b) | 94,500 |
| Operating income | 3,000 | 4,802 | 6,931 | 14,733 |
| Purchasing power loss | - | 1,500 (c) | 3,000 (d) | 4,500 |
| Net income | 3,000 | 3,302 | 3,931 | 10,233 |
- (a) 30,000 x 105/100 = 31,500
- (b) 30,000 x 110/100 = 33,000
- (c) (30,000 x 105/100) - 30,000 = 1,500
- (d) (63,000 x 110/105) - 63,000 = 3,000