PRACTICAL IMPLICATIONS OF MEASURING AT HISTORICAL COST IN AN INFLATIONARY ENVIRONMENT

IMPLICAÇÕES PRÁTICAS DA MENSURAÇÃO AO CUSTO HISTÓRICO EM AMBIENTES INFLACIONÁRIOS

Marta Cristina Pelucio Grecco [1] 

Elisson Paulo Silva [2]

Cecília Moraes Santostaso Geron [3] 

Fabiana Lopes da Silva [4]

ABSTRACT

This study aimed to analyze the impacts that can occur in the balance sheets of companies in inflationary environments when these balances sheets are not corrected, independently of whether the inflation rate reaches the level determined by IAS 29. The sample chosen consisted of companies from G20 member states that had already adhered to IFRS. The data distribution was analyzed using the ROA, ROE, EPS, and revenue weighted by total assets of the companies studied, before and after monetary correction, using statistical inference and evaluating the statistical probability distribution using the Kolmogorov-Smirnov and Shapiro-Wilk normality tests, and subsequently applying the Wilcoxon non-parametric test. The main results found were that monetary correction in the financial statements of the companies analyzed shows significance, both in countries with high inflation rates and in those with lower cumulative inflation rates. It is concluded that inflation significantly impacts the results of financial statements above a 10% cumulative rate, so measuring accounting elements at historical cost loses relevance, and it is vital to use corrected historical cost by applying a monetary correction. 

Keywords: inflation; IFRS; IAS 29; monetary correction; financial statements.

RESUMO

O presente estudo teve o objetivo de analisar os impactos que podem ocorrer nos balanços das companhias em ambientes inflacionários, quando estes não são corrigidos, independente do índice inflacionário atingir o nível determinado pela IAS 29. A amostra selecionada foram as empresas dos países membros do Grupo dos 20, que já aderiram às IFRS. Foi analisada a distribuição de dados por meio dos indicadores ROA, ROE, LPA e Receita ponderada pelo total de ativos das empresas estudadas, antes e depois da correção monetária, através de estatística inferencial, avaliando-se a distribuição de probabilidade estatística por meio dos testes de normalidade Kolmogorov-Smirnov e Shapiro-Wilk, e posteriormente foi aplicado o teste não paramétrico de Wilcoxon. Os principais resultados alcançados foram que a correção monetária nas demonstrações financeiras das empresas analisadas demonstra significância, tanto em países com altos índices de inflação, quanto em países com menores índices de inflação acumulada. Conclui-se que a inflação impacta significativamente nos resultados das demonstrações financeiras a partir do acúmulo de 10%, dessa forma a mensuração ao custo histórico dos elementos contábeis perde sua relevância, sendo fundamental o uso do custo histórico corrigido com a aplicação da correção monetária. 

Palavras-chave: Inflação; IFRS; IAS 29; Correção monetária; Demonstrações financeiras.

1. Introduction

In periods of high inflation the measurement of accounting elements at historical cost loses its relevance and measuring at corrected historical cost is more appropriate. Accounting information based solely on historical cost does not adequately represent a company’s equity position, reducing the usefulness of the information. Goldschmidt and Yaron (1991) highlight that unadjusted financial statements may make no sense, or may even be misleading, under inflationary conditions.

The International Accounting Standards Board (IASB) issues the IAS 29 – Financial Reporting in Hyperinflationary Economies, that aims to establish the specific accounting treatment for entities operating in hyperinflationary economies, so that their financial information is useful. IAS 29 determines, among other positions, that hyperinflation occurs in a country when the cumulative inflation rate over three years is close to or exceeds 100%. 

The Group of Latin American Accounting Standard Setters (GLASS) has asked the IASB to remove the 100% reference and to consider the possibility correcting balance sheets correction if financial information users think that the loss in a currency’s purchasing power was relevant during a particular period. 

Extremely competitive markets have increasingly required more qualified information on company performance. Accounting, through its basic objective of providing useful information to its users, has altered to meet the demands of these users for more relevant information regarding the generation and distribution of wealth produced by companies. However, to be useful, accounting statements should adequately reflect an entity’s equity situation to enable an assertive economic and financial interpretation of it (Oliveira et al., 2013).

The measurement of financial transactions is an essential attribute for obtaining accounting information and currencies are used for this. However, a currency is an asset, whose purchasing power is not constant over time and experiences alterations in the capital market for various reasons, possibly resulting in inflation or deflation. An inflationary environment directly affects the measurement of accounting elements, hindering the comparability of information over time (Oliveira et al., 2013).

In light of this context, this paper aims to investigate the impacts that can occur in the balance sheets of companies in inflationary environments when these balance sheets are not corrected, independently of whether the inflation rate reaches the 100% quantitative level set by IAS 29. The sample chosen to develop this study consists of companies from G20 member states, due to the major importance of the actions of that group on the world stage.

Some articles have already been developed to analyze the impact of inflation on financial statements, focusing on a single country, for example Sarquis and Flores (2020) and Silva and Malacrida (2021) in Brazil, Gordon (2002) in Mexico and Chamisa et al. (2018) in Zimbabwe. However, no studies were found that addressed this effect at the international level with several countries or that sought to observe from which accumulated inflationary level the accounting information loses its relevance. Thus, this article aims to fill these gaps. 

The study aims to make practical and theoretical contributions, with a more in-depth study of the relevance of measuring financial statements at corrected historical cost in inflationary environments, including in countries that do not reach inflation rates enabling correction according to IFRS. 

The study also hopes to provide a practical contribution to market analysts and standard setters, with a possible proposed review or alteration of international standard IAS 29, due to the possible loss of accounting relevance in the presentation of statements at historical cost, as they do not consider the impact of inflation on them, which can generate financial statements with distorted values in relation to the financial reality of the organization.

2. Theoretical Framework

Measuring is a process that consists of determining the values at which the elements of accounting statements should be recognized and presented in the balance sheet and income statement.  This process involves selecting a specific basis for measurement (IASB, 2020).

Accounting measurements should present relevant, useful, and timely information to users, which will be used for controlling, planning, evaluating, and decision making. This information should be faithful to the facts and transparent, leading to reliability and showing neutrality on the part of those who generated it. 

More comparable financial statements, as intended by IFRS, facilitate investments between different jurisdictions and the integration of their capital markets. Comparability can facilitate investors’ evaluations of what the most or least lucrative or risky companies are, and it can also increase capital market liquidity and reduce companies’ cost of capital (Ribeiro & Braunbeck, 2017).

Besides its easy use, corrected historical cost enables the comparison of values on different dates. Historical cost has the premise of being the representation of a statistical assessment that does not consider the dynamic nature of the economy with its constant price fluctuations. One alternative for improving the level of information of historical cost is to use corrected historical cost as a basis for entry values. Price-level accounting is the original definition used for when the historical cost is obtained from a correction, whether by a coefficient of the variation in the general price index (GPI) or by a derivative of the variation in another more specific index. Current cost can also be corrected, by adjusting it using a coefficient of variation of the GPI or another specific index.  (Fernandes, 1998).

For Tinoco (1992), corrected current cost is the best basis for accounting measurement. However, the high cost of this information and the unavailability of some data limit the use of corrected cost. Within this context, corrected historical cost is more used due to the lower cost and as it more adequately reflects general or specific price fluctuations, when compared to historical cost. In the same way, Gordon (2001) found results that indicate that corrected current cost is more relevant than corrected historical cost and this one it more relevant than historical cost. He investigated a sample of Mexican firms from 1989 to 1995.

The need for monetary correction occurs because of the accounting facts being dynamic and recorded in different periods. 

Sarquis et al. (2021) found material differences in indicators of Brazilian companies between the historical cost and corrected historical cost models and found that companies have distributed greater profits by the historical cost model than would be distributed by the corrected historical cost. Likewise, Silva and Malacrida (2021) found evidence that significant information loss occurs without the correction of the financial statements for inflationary effects.

IAS 29 states that this standard should be applied to the financial statements, including consolidated financial statements, of any entity whose functional currency is the currency of a hyperinflationary economy. Hyperinflation is indicated by characteristics of a country’s economic environment, including, but not limited to:

(a)        the population in general prefers to hold its wealth in non-monetary assets or in a relatively stable foreign currency. The quantities held in local currency are immediately invested to maintain purchasing power;

(b)       the population in general considers monetary values not in terms of the local currency, but in terms of a relatively stable foreign currency. Prices may be quoted in that currency; 

(c)        sales and purchases on credit occur at prices that compensate for the expected loss of purchasing power during the credit period, even if the period is short;

(d)       interest rates, wages, and prices are tied to a price index; and

(e)        the cumulative inflation rate over three years is close to or exceeds 100%.

Alzugaray Méndez et al. (2010) verified the application of IAS 29 in Uruguay and concluded that, quantitatively, IAS 29 should not be used, as inflation on that occasion was close to 100% in three years. However, qualitatively, they understood that the Uruguayan economy was behaving as hyperinflationary, as the dollar was being used as a substitute currency for the local one. It is noted that, in practice, countries use the 100% rule and not the qualitative conditions that are presented by IAS 29, which damages the principle of a true and fair view prescribed by the IASB. 

In a document sent to the IASB in 2010, the Accounting Pronouncements Committee of Brazil (CPC) requested a revision of the quantitative measure of 100% and affirmed that inflation at much lower levels than that determined in IAS 29 produces a significant impact on an organization’s return on investments, financial position, and performance. In a meeting held in the same year in London, at the IASB headquarters, representatives of GLASS argued for changes in the rules of IAS 29. GLASS requested the removal of the 100% reference and the possibility of correcting balance sheets if the financial information users judged that the loss of a currency’s purchasing power had been expressive over a period (Torres, 2011).

According to Ilter (2019), inflation and devaluation create difficulties for local (Turkish) companies and foreign subsidiaries in terms of financial reports. Companies pay taxes on earnings that are not monetarily corrected, which generates a discrepancy when corrected earnings are disclosed that were not the basis for the payment of taxes. 

According to Bobryshev (2016), when inflation is not considered in accounting records and earnings measurements, the pricing process is hindered and it generally results in the sale of goods at reduced prices, which can lead to the manufacturing of loss-making products and an inefficient production program.  

A company’s conventional financial statements are based on the perception that the monetary unit is stable. However, under inflationary conditions the purchasing power of money decreases, inflating some key financial statement numbers, especially the value of net income and of non-monetary items, thus distorting net equity (Goldschmidt & Yaron, 1991). 

However, Chamisa (2007) studied the use of financial statements corrected according to IAS 29 in Zimbabwe and the results indicated that investment analysts in the country make no or little use of adjusted financial statements and, when deciding about an investment in shares, they perceive this information as “not useful,” perhaps due to a lack of knowledge or analytical inefficiency of the analysts who participated in the survey. This appears to be evident in the study of Ionas et al. (2007), who point to the difficulty for the Romanian market to understand the existence of two sets of accounting statements with the implementation of IAS 29: one set of non-corrected statements, based on which income tax is paid, and another set of statements that show monetarily corrected values. 

The importance of the comparability of accounting statements has been highlighted with the international harmonization of accounting practices. The comparability of information is impacted by the absence of the accounting recognition of the effects of inflation on financial statements. Thus, although international harmonization has brought company accounting practices closer to each other, it does not ensure the adequate recording of economic events in organizations (Souza et al, 2018).

According to Ambrozini (2006), the fact that companies do not use the monetary correction tool impedes accounting records from adequately presenting an organization’s financial situation, and it distorts the comparability of information between two different periods. Direct impacts of this include the possibility of company decapitalization or its continuity being compromised.

According to Abbas and AlAbdullah (2012), the characteristic of comparability that is expected for accounting information is not achieved when a general price index is used in the adjustments prescribed by IAS 29. They conclude that the official index does not represent a country’s inflation rate, as it is often biased. When countries enter hyperinflation, general price indices are normally manipulated by governments; such manipulation sometimes even occurs so as to avoid being considered as hyperinflationary, when the 100% rule alone is used as a basis. The accounting information can thus be undermined. An index calculated by a non-governmental entity could perhaps be used for adjustments, as the Brazilian experience has already shown with the adoption of the accounting monetary unit, seeking to mitigate such manipulation.

3. Methodological Procedures 

Given that the study’s aim is to investigate the impacts that can occur in the balance sheets of companies in inflationary environments when these balance sheets are not corrected, independently of whether the inflation rate reaches the 100% quantitative level set by IAS 29, the study population chosen consisted of G20 member states.

Publicly traded companies from the G20 members that had already adhered to IFRS were chosen as a sample, as only these ones follow the principles contained in standard IAS 29. 

The G20 members present in the sample adhered to IFRS in different years, so, for greater uniformity and comparability of the results, the analyses started in 2012, when the last countries converged to IFRS, namely Russia, Mexico, and Argentina. Therefore, the years from 2012 to 2018 were chosen as the sampling period.

The study sought companies headquartered in one of the 14 G20 members evaluated. Organizations were found from Brazil, Argentina, Mexico, Canada, South Africa, Australia, the European Union, Russia, Turkey, Germany, France, Italy, and the United Kingdom. Of the 28 members of the European Union, data were found on companies from eight countries: Belgium, Denmark, Finland, Greece, Ireland, Luxembourg, Spain, and Sweden, as well as France, Germany, Italy, and the United Kingdom, which were already mentioned as being direct members of the G20. The total number of countries found was therefore 21, 13 G20 members that had adhered to IFRS, and 8 European Union countries.  

A sample of 455 companies was taken from the Economática database. Companies that did not have complete financial statements for all the years established were excluded, as well as those that presented their financial statements in US dollars, as this study sought to assess the inflationary implications for each country analyzed in their local currency. Therefore, the final sample was composed of 257 companies from 14 countries.

Each country’s official inflation index was used for measuring earnings. The historical inflation rate data from 2012 to 2018 of the countries analyzed were obtained from  https://pt.inflation.eu/, except for Argentina and Australia, which had no inflation data available on that electronic platform. The Australian data were obtained electronically from https://pt.tradingeconomics.com/australia/inflation-cpi. The Argentinian inflation data from 2012 to 2017 were obtained from the Bolsa de Comércio de Santa Fé (2018) publication; the 2018 inflation data were obtained from the https://brasil.elpais.com/brasil/2019/01/15/internacional/1547578125_658156.html. All the historical inflation rates obtained for the 14 countries of the final sample can be found in Table 1.

Table 1: Annual historical inflation from 2012 to 2018 of the countries studied

The CPI (Consumer Price Index) was used for all countries, except Brazil, for which the IPCA (Extended Consumer Price Index) was used.

Source: data from the research.

To apply the monetary correction adjustments and fulfill the aim of this study, the points present in IAS 29 were used. The statements were classified into monetary items (MI) and non-monetary items (NMI) and net equity (NE), in accordance with the procedures detailed below. 

The NMI variations (NMI _{year n} - NMI _{year n-1}) obtained from 2013 onward (2012 was used as the base year) were monetarily corrected by the mean inflation of the reference period, as according to Equation (1). The earnings accounts were also corrected by the mean inflation of the period. Thus, where NMI is seen in Equation (2), this is also applicable for the net equity and earnings accounts.

NMI variation _{year n*} x (1+(Inflation _{year n} /2))                                                 Equation (1)

Taking the annual variations of balances corrected by mean inflation, the adjusted balances for each year were calculated, as according to Equation (2).

NMI _{year n-1*} x (1+ Inflation _{year n}) + NMI corrected variation _{year n}                 Equation (2)

To represent all the balance sheets in the 2018 base year, it was necessary, in accordance with IAS 29, to correct the comparative balance sheets from 2012 to 2017 according to Equation (3) to express those annual statements in 2018 purchasing power currency.

Balance Accounts _{year n} x ((1+ Inflation. _{year n+1}) x (1+ Inflation. _{year n+2}) x (...) x (1+ Inflation. _{last year}))                                                                                                                                      Equation (3)

in which:

In Equation (3), the monetary correction was carried out of the new annual balances of each non-monetary item, net equity, and earnings of Equation (2) and the monetary items, multiplying them by the cumulative inflations of the following years. However, for the last year evaluated (2018), the values are not corrected because they are already expressed in 2018 purchasing power currency.

Finally, the gains and losses with monetary items (G/LMI) were calculated according to Equation (4), which was obtained by the difference, and so already expressed in 2018 purchasing power currency.

G/LMI = Assets _corrected - (Liabilities + Net Equity) _corrected                            Equation (4)

The G/LMI value was added to the annual consolidated net profit value and, consequently, to the consolidated net equity.

The use of indicators is suitable for analyses as they present relative and non-absolute data. The analysis of absolute data can cause distortions, as entities present different sizes and volumes. Thus, the indicators applied to evaluate the study variables, before and after monetary correction, were ROA (return on assets), ROE (return on equity), EPS (earnings per share), and R/TA (revenue over total assets).

Like Sarquis et al. (2021), ROA and ROE were used as they are profitability indicators commonly used in financial analyzes and doubly affected by inflation rates. These indicators reflect the long-term effects of the lack of correction of their denominators (Assets and Equity, respectively). Thus, for a short-term analysis, performance indicators that focused exclusively on the result of the R/TA and EPS period were included.

Once the monetary correction was made of all the items listed in the balance sheet, the ROA, ROE, EPS, and R/TA indicators were obtained, both for the original data without correction and for the corrected data.

The data analysis was carried out with inferential statistics, evaluating the statistical probability distribution of the data (EPS, ROA, ROE, and R/TA, before and after the correction), using the Kolmogorov-Smirnov (K-S) and Shapiro-Wilk (S-W) normality tests. For the data that presented a normal distribution, the parametric difference of means test was applied; otherwise, the Wilcoxon non-parametric difference of means test was applied.

4. Presentation and Analysis of the Results 

The study variables (ROA, ROE, and R/TA obtained from the original accounting statements and ROAc, ROEx, and R/TAc obtained from the corrected accounting statements) are presented in Table 2.

Table 2: ROA, ROE, and R/TA before and after the monetary correction

Source: data from the research.

Note that the study variables present different values when obtained from the accounting statements without monetary correction and from the monetarily corrected accounting statements. Therefore, to know whether these values are statistically different, statistical tests were applied as described below.

To verify if the sample studied had a normal data (ROA, ROE, EPS, and R/TA) distribution, and so determine if parametric or non-parametric tests would be carried out, the K-S and S-W normality tests were applied. The results indicated that the data distributions were not normal and, therefore, non-parametric tests were applied.

The Wilcoxon non-parametric test was applied to the entire database, showing that the means calculated are statistically different at a 1% significance level. Thus, carrying out the monetary correction significantly alters the ROA, ROE, EPS, and R/TA of the companies and countries studied.

As already highlighted by Goldschmidt and Yaron (1991), the results indicate significant distortions that the alteration in purchasing power causes in the financial statements. Although Chamisa (2007) and Ionas et al. (2007) have noted the difficulty for the market to understand monetarily corrected financial statements, the use of statements without proper corrections can induce investors and creditors into inaccurate decision making, due to the loss of relevance of the indicators taken from distorted numbers. As highlighted by Ambrozini (2006) and Souza et al. (2018), the correction of financial statements leads to better comparability of information.

This item analyzes the results obtained from comparing the countries studied, as summarized in Table 3.

Table 3: Summary of the results obtained by country

Note. ME/TA = monetary assets/total assets.
 *** statistically different at a 1% significance level
 ** statistically different at a 5% significance level
 * statistically different at a 10% significance level

Source: data from the research

Of the 14 countries studied, 10 presented significances in relation to ROA, showing that carrying out the monetary correction significantly alters the ROA of the companies of those countries, equating to 71.43% relevance of this indicator in relation to the sample total.

Of the four countries that did not present significance in the monetary correction in relation to ROA, 3 have only 1 company in the study and 1 country has 2 companies in the study. Of the 10 countries that presented significance in relation to ROA, 2 have only 1 company in the study and all the others have at least 3 companies in the sample composition. It is observed that countries with a very small number of companies tend to present a greater distortion in the results, due to the data that comprise the calculation of net earnings over total assets (ROA) being influenced by the earnings and investments of only 1 or 2 companies, with there not being a considerable values base from which the outliers can be ignored.

Of the 14 countries studies, 11 presented significances in relation to ROE, showing that carrying out the monetary correction significantly alters the ROE of the companies of those countries, which equates to 78.57% relevance of this indicator in relation to the sample total.

Of the 3 countries that did not present significance in the monetary correction in relation to ROE, 2 have only 1 company in the study and 1 country has 2 companies in the study. Of the 11 countries that presented significance in relation to ROE, 3 have only 1 company in the study and all the others have at least 3 companies in the sample composition. It is observed that countries with a very small number of companies tend to present a greater distortion in the results, due to the data that comprise the calculation of net earnings over net equity (ROE) being influenced by the earnings and investments of only 1 or 2 companies, with there not being a considerable values base from which the outliers can be ignored.

Of the 14 countries studies, 10 presented significances in relation to EPS, showing that carrying out the monetary correction significantly alters the EPS of the companies of those countries, which equates to 71.43% relevance of this indicator in relation to the sample total.

Of the 4 countries that did not present significance in the monetary correction in relation to EPS, 3 have only 1 company in the study and 1 country has 2 companies in the study. Of the 10 countries that presented significance in relation to EPS, 2 have only 1 company in the study and all the others have at least 3 companies in the sample composition. It is observed that countries with a very small number of companies tend to present a greater distortion in the results, due to the data that comprise the calculation of net earnings over the number of shares issued (EPS) being influenced by the earnings and investments of only 1 or 2 companies, with there not being a considerable values base from which the outliers can be ignored.

Of the 14 countries studies, 8 presented significance in relation to R/TA, showing that carrying out the monetary correction significantly alters the R/TA of the companies of those countries, which equates to 57.14% relevance of this indicator in relation to the sample total.

Of the 6 countries that did not present significance in the monetary correction in relation to R/TA, 5 have only 1 company in the study and 1 country has 2 companies in the study. Of the 8 countries that presented significance in relation to R/TA, all have at least 3 companies in the study. It is observed that countries with a very small number of companies tend to present a greater distortion in the results, due to the data that comprise the calculation of revenue over total assets (R/TA) being influenced by the earnings and investments of only 1 or 2 companies, with there not being a considerable values base from which the outliers can be ignored. R/TA was the indicator that had the greatest number of countries composed of only one company that did not show significance in the monetary correction.

Of the 14 countries studies, 11 presented significances in relation to at least two of the four indicators evaluated (ROA, ROE, EPS, and R/TA), showing that carrying out the monetary correction significantly alters two or more of these indicators for the companies of those countries, which equates to 78.57% relevance in relation to the sample total. Three countries did not present significance in the monetary correction in relation to any of the indicators evaluated, two of which were composed of one company, and one was composed of two companies.

For all the countries studied with cumulative inflation above 10% it is noted that no monetary correction of the financial statements generates significant differences in the calculation of their indicators, independently of the composition of monetary and non-monetary items on their balance sheets. Thus, it is noted that the informational distortions mentioned by Goldschmidt and Yaron (1991) and the loss of comparability mentioned by Ambrozini (2006) and Souza et al (2018) occur in countries with cumulative inflation above 10%.

5. Conclusion

The aim of this study was to provide a discussion of the impacts that can occur when companies do not carry out a monetary correction of their balance sheets, even when they do not reach the inflation rate determined by IAS 29. To achieve the research objective, the study was applied to companies of G20 member states that had already converged to IFRS, thus covering great world powers, as well as emerging countries in the global economy.

The results obtained show the importance of the monetary correction of financial statements, even in countries that do not reach 100% inflation in three years, as established by IAS 29. This result suggests the revision of both the 100% rate and the three-year timeline, as it was observed in this study that both countries with hyperinflationary economies, such as Argentina, and countries with lower inflation, such as Italy, present significance in the correction of financial statements.

It is therefore concluded that above 10% cumulative inflation it becomes important to present accounting statements at historical cost, with monetary correction of the accounting elements and calculation of gains and losses with the monetary items subject to the inflationary effects.

As concluding remarks, we highlight that despite the IASB’s tendency to increasingly use exit value measurements, especially at fair value, comparability is lost when there is no monetary correction of comparative financial statements. 

The results obtained in this study collaborate theoretically with the academics in relation to the measurement of accounting elements. It is noted that the measurement of accounting elements at historical cost is considerably impacted in inflationary environments when they are not monetarily corrected. Thus, this study sought to emphasize the importance of using corrected historical cost in inflationary environments with cumulative inflation above 10%.

This paper also contributes to market analysts and standard setters, proposing a revision of ISA 29 given the importance of the correction of accounting statements in environments with cumulative inflation above 10%, due to the distortions in the results of financial statements caused by a lack of monetary correction.

The present research also verifies the importance of the debate among international accounting bodies regarding this question, seeking greater applicability of IAS 29 in different inflationary settings.

Finally, considering market globalization and knowing that IFRS convergence has reached more than 100 nations all around the world, it is increasingly important to present concise financial statements with quality information in order to avoid distortions in results. A review of IAS 29 is necessary and, based on the research results, the practice of monetary correction needs to be adopted in many countries.

References

Abbas, B. M. A., & AlAbdullah, R. (2012). Are IASBS Qualitative Characteristics Reflected In IFRSS? IAS 29 As A Case Study. Research Journal of Economics, Business and ICT, 5.

Alzugaray Méndez, A., Delgado Ferré, F., & Escotto Muiño, S. (2010). Análisis del nuevo borrador de ajuste por inflación de la NIC 29 en el marco de las normas contables vigentes. Universidad de la República, Facultad de Ciencias Económicas y de Administración.

Ambrozini, M. A. (2006). O impacto do fim da correção monetária no resultado das companhias brasileiras de capital aberto e na distribuição de dividendos: estudo empírico no período de 1996 a 2004 (Dissertação de mestrado em controladoria e contabilidade). Faculdade de Economia, Administração e Contabilidade da Universidade de São Paulo, Ribeirão Preto, SP, Brasil.

Bobryshev, A. N. (2016) Methodological aspects of applying the CVP-analysis concept under economic crisis. Finance and Credit.   ISSN 2311-9381 (Online), 18 (43), 18-35.

Bolsa de Comercio de Santa Fé. (2018). Inflación En Argentina: Periodo 2007-2017. Centro de Estudios y Servicios. Retrieved from https://www.infocampo.com.ar/wp-content/uploads/2018/03/Informe-Lautaro-1.pdf

Chamisa, E. (2007). The use and perceived usefulness of IAS 29 restated financial statements by Zimbabwean investment analysts. South African Journal of Accounting Research, 21(1), 57-79.

Chamisa, E., Mangena, M., Pamburai, H. H., & Tauringana, V. (2018). Financial reporting in hyperinflationary economies and the value relevance of accounting amounts: hard evidence from Zimbabwe. Review of Accounting Studies, 23(4), 1241-1273.

Fernandes, T. M. C. B. M. (1998). Ativo e sua mensuração. Caderno de estudos, (18), 01-12.

Goldschmidt, Y., & Yaron, J. (1991). Inflation adjustments of financial statements: application of international accounting standard 29: financial reporting in hyperinflationary economies. Policy Research Working Paper Series 670, The World Bank. 

Gordon, E. A. (2001). Accounting for changing prices: The value relevance of historical cost, price level, and replacement cost accounting in Mexico. Journal of Accounting Research, 39(1), 177-200.

IASB. (2020). IFRS® Standards Required 1 January 2020. IFRS books.

Ilter, C. (2019). Inflation and devaluation effects on financial statements: The case of Turkey in 2018. Acta Oeconomica Pragensia, 2019(2), 49-61.

Ionas¸ cu, I., Ionas¸ cu, M., Olimid, L., & Artemisa Calu, D. (2007). An empirical evaluation of the costs of harmonizing Romanian accounting with international regulations (EU Directives and IAS/IFRS). Accounting in Europe, 4(2), 169-206.

Oliveira, K. P. S., Cavalcanti, B. S. B., Lima, A. S., & Silva, J. D. G. (2013). Impacto da aplicação do custo histórico corrigido: evidências em empresas do setor de telecomunicação listadas na BM&FBovespa. REUNIR - Revista de Administração, Contabilidade e Sustentabilidade, 3(2), 90-106.

Ribeiro, C. W. L., & Braunbeck, G. O. (2017). Adoção das normas IFRS no âmbito mundial e o seu impacto na comparabilidade das demonstrações contábeis. RAGC, 5(21), 87-97.

Sarquis, R. W., da Silva Flores, E., de Freitas Bittar-Godinho, D., & Martins, E. (2020). Inflação: se eu não a vejo na contabilidade, não existe?. Revista Fipecafi de Contabilidade, Controladoria e Finanças (RFCC), 1(2), 108-126.

Silva, V. F., & Malacrida, M. J. C. (2021). Efeitos da não correção monetária nas informações contábeis no pós convergência ao padrão IFRS. Revista Fipecafi de Contabilidade, Controladoria e Finanças (RFCC), 2(1), 23-44.

Souza, W. R. S., Peters, M., Silva, A. F. D., & Antunes, M. T. P. (2018). Vinte e um anos sem correção monetária no Brasil: impactos na comparabilidade da informação contábil em empresas siderúrgicas e metalúrgicas. Revista Contabilidade & Finanças, 29(78), 355-374.

Tinoco, J. E. P. (1992). Avaliação patrimonial em contabilidade a valores de entrada e saída. Caderno de estudos FIPECAFI, São Paulo, SP, Brasil.

Torres, F. (2011). Contabilidade e IFRS: Latinos querem corrigir balanços. Retrieved from http://www.abbc.org.br/noticiasview.asp?idNoticia=290

Recebido: 29/06/2023

Aceito: 07/07/2023

------------

Notas