Application of TAS 29 Financial Reporting Standard in Hyperinflationary Economies and Analysis on Health Care Business

Abstract

Purpose - The purpose of this research is to analyze the financial data of the company in high inflationary periods when the money loses its purchasing power. By applying the standard, it is aimed to present more real data by removing the business data from the inflation environment. Design/methodology/approach – In this study, 31/12/2023 financial data of a health enterprise operating in Ankara were analyzed and the standard was applied. Monetary and non-monetary accounts before and after the application of inflation accounting were analyzed and then inflation accounting was applied. Findings - As a result of the application, in an inflationary environment, company financial data must first reflect the real data in order for company managers, those who want to invest in the company or other decision-making bodies to access accurate and transparent data. In times of depression, the real value of businesses is important for management and investment. Discussion -.It is stated that inflation accounting should be applied in inflationary periods.