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Financial Analysis under Inflation in Construction
The stated value of main items in the financial reports of a construction company does not reflect correctly under inflation their actual value. This introduces a considerable difficulty into the process of financial analysis. The paper presents a method for appropriate adjustment of the main financial reports - the Balance Sheet and the Income Statement, to eliminate the distorting effects of inflation. The procedure is illustrated by an example of application.
Financial Analysis under Inflation in Construction
The stated value of main items in the financial reports of a construction company does not reflect correctly under inflation their actual value. This introduces a considerable difficulty into the process of financial analysis. The paper presents a method for appropriate adjustment of the main financial reports - the Balance Sheet and the Income Statement, to eliminate the distorting effects of inflation. The procedure is illustrated by an example of application.
Financial Analysis under Inflation in Construction
Warszawski, Abraham (author) / Rosenfeld, Yechiel (author)
Journal of the Construction Division ; 108 ; 341-354
2021-01-01
141982-01-01 pages
Article (Journal)
Electronic Resource
Unknown
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