The Effect of Preparing Financial Statements in Hyperinflationary Economies on the Financial Analysis Through Ratios: Case Study


Abstract in English

The aim of this research is to investigate the effect of preparing the financial statements through International Accounting Standard /29/ on the financial analysis through ratios, since the increase in the inflation rate affects social and economic aspects, the purchasing power of cash had been decreased, so the financial statement of the listed companies in the Syrian Stock Exchange didn't show the right position of these companies because it didn't take into consideration the changes in purchasing power even they are in compliance with International Financial Reporting Standards (IFRS), so it wouldn't be possible to rely on it for making decision, when use the financial analysis which is one of the methods to help the financial statement user for their decision.

References used

Belkaoui, A, 2000- Accounting theory, fourth edition, university of Illinois at Chicago, USA
FASB, 1979, Statement of Financial Accounting Standards No. 33: Financial Reporting and Changing Prices
IASB, 2013, Conceptual Framework in Accounting And Financial Reporting

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