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I think it would be helpful to have more examples of how various countries deal with high inflation. Mexico has or had a corporate law requiring Mexican companies to adjust their balance sheets according to a government price index. Anyone have a good source for details? And other countries? -- Foggy Morning 22:52, 1 August 2007 (UTC)
In July 2007, a couple of editors disagreed about the content of this article. [1] All well-intended, I assume, but the article has suffered from this dissention.
It would be helpful to Wikipedia readers if facts and sources for this article are as clear and accurate as possible. Some good citations might exist in the article's history.
Let's make it a good article, okay? -- Foggy Morning ( talk) 00:12, 7 January 2008 (UTC)
What is Wikipedia? It is an encyclopedia reflecting the state of the world around us. It is not simply about facts.
John Quiggin,
You state that inflation accounting is "not confined to v high inflation" but to all inflationary environments - including low and very low inflation. I agree with you. You and I understand that, but, that is not how the term "inflation accounting" - up till now - has been used. It was and is used to refer to inflation-adjusting accounting values in high and hyperinflationary economies.
I am sure you know very well that companies in low inflation countries inflation-adjusting salaries, rents, taxes, pensions, etc on an annual basis do not state in their notes to their balance sheets that they implement two accounting models: the Historical Cost Accounting model and an inflation accounting model. They simply state that their accounts have been prepared based on the HCA model which is not an inflation-accounting model.
When we mention inflation accounting today people immediately think back to the attempts made in the 1970´s to implement it in the US and UK - during high inflation.
I think we should reflect that in this article. PennySeven ( talk) 08:15, 5 October 2008 (UTC)
In fact, the International Accounting Standards Board confirms this when it states in IAS 29: "In most countries, primary financial statements are prepared on the historical cost basis of accounting without regard either to changes in the general level of prices or to increases in specific prices of assets held, except to the extent that property, plant and equipment and investments may be revalued."
In a way it is not 100% correct stating "without regard either to changes in the general level of prices" because salaries, pensions, rents, etc are inflation-adjusted in most countries. PennySeven ( talk) 08:28, 5 October 2008 (UTC)
So, maybe we should state in this article that although the term inflation accounting generally refers to inflation-adjusting accounting values during high and hyperinflation (for example in the 1970´s), the fact of the matter is that is in fact being applied to items like salaries, rents, taxes, pensions, etc in most countries but this is not specifically described as inflation-accounting in these countries as can be seen from the IASB statement above.
Inflation-accounting is "in fact" applied in low inflation - I agree - but very few people actually sees it as such. PennySeven ( talk) 08:43, 5 October 2008 (UTC)
I do not think you will be able to find a realiable source stating that "inflation accounting is used during low inflation" while there are numerous references on the net that inflation accounting is used during high and hyperinflation.
PennySeven (
talk)
10:02, 5 October 2008 (UTC)
I have placed a Citation Needed request. I prefer the one that states the date of the request but I do not know the code.
PennySeven (
talk)
10:55, 5 October 2008 (UTC)
Please note that the free dictionary and ANZ.com sources provided above are clearly shown on the sites as being from books, from reputable publishers, such as this one: [2].-- Gregalton ( talk) 14:43, 5 October 2008 (UTC)
This is the
talk page for discussing improvements to the
Inflation accounting article. This is not a forum for general discussion of the article's subject. |
Article policies
|
Find sources: Google ( books · news · scholar · free images · WP refs) · FENS · JSTOR · TWL |
Archives: 1 |
This article is rated Start-class on Wikipedia's
content assessment scale. It is of interest to the following WikiProjects: | ||||||||||||||||||||||||
|
I think it would be helpful to have more examples of how various countries deal with high inflation. Mexico has or had a corporate law requiring Mexican companies to adjust their balance sheets according to a government price index. Anyone have a good source for details? And other countries? -- Foggy Morning 22:52, 1 August 2007 (UTC)
In July 2007, a couple of editors disagreed about the content of this article. [1] All well-intended, I assume, but the article has suffered from this dissention.
It would be helpful to Wikipedia readers if facts and sources for this article are as clear and accurate as possible. Some good citations might exist in the article's history.
Let's make it a good article, okay? -- Foggy Morning ( talk) 00:12, 7 January 2008 (UTC)
What is Wikipedia? It is an encyclopedia reflecting the state of the world around us. It is not simply about facts.
John Quiggin,
You state that inflation accounting is "not confined to v high inflation" but to all inflationary environments - including low and very low inflation. I agree with you. You and I understand that, but, that is not how the term "inflation accounting" - up till now - has been used. It was and is used to refer to inflation-adjusting accounting values in high and hyperinflationary economies.
I am sure you know very well that companies in low inflation countries inflation-adjusting salaries, rents, taxes, pensions, etc on an annual basis do not state in their notes to their balance sheets that they implement two accounting models: the Historical Cost Accounting model and an inflation accounting model. They simply state that their accounts have been prepared based on the HCA model which is not an inflation-accounting model.
When we mention inflation accounting today people immediately think back to the attempts made in the 1970´s to implement it in the US and UK - during high inflation.
I think we should reflect that in this article. PennySeven ( talk) 08:15, 5 October 2008 (UTC)
In fact, the International Accounting Standards Board confirms this when it states in IAS 29: "In most countries, primary financial statements are prepared on the historical cost basis of accounting without regard either to changes in the general level of prices or to increases in specific prices of assets held, except to the extent that property, plant and equipment and investments may be revalued."
In a way it is not 100% correct stating "without regard either to changes in the general level of prices" because salaries, pensions, rents, etc are inflation-adjusted in most countries. PennySeven ( talk) 08:28, 5 October 2008 (UTC)
So, maybe we should state in this article that although the term inflation accounting generally refers to inflation-adjusting accounting values during high and hyperinflation (for example in the 1970´s), the fact of the matter is that is in fact being applied to items like salaries, rents, taxes, pensions, etc in most countries but this is not specifically described as inflation-accounting in these countries as can be seen from the IASB statement above.
Inflation-accounting is "in fact" applied in low inflation - I agree - but very few people actually sees it as such. PennySeven ( talk) 08:43, 5 October 2008 (UTC)
I do not think you will be able to find a realiable source stating that "inflation accounting is used during low inflation" while there are numerous references on the net that inflation accounting is used during high and hyperinflation.
PennySeven (
talk)
10:02, 5 October 2008 (UTC)
I have placed a Citation Needed request. I prefer the one that states the date of the request but I do not know the code.
PennySeven (
talk)
10:55, 5 October 2008 (UTC)
Please note that the free dictionary and ANZ.com sources provided above are clearly shown on the sites as being from books, from reputable publishers, such as this one: [2].-- Gregalton ( talk) 14:43, 5 October 2008 (UTC)