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International Accounting
 

The impact of inflation on the presentation of financial statements by Syrian companies

Vol. 25, Iss. 9, SEPTEMBER 2022

Received: 7 July 2022

Received in revised form: 19 August 2022

Accepted: 31 August 2022

Available online: 15 September 2022

Subject Heading: ACCOUNTING SYSTEMS ADAPTING

JEL Classification: М41

Pages: 984–999

https://doi.org/10.24891/ia.25.9.984

Lidiya I. KULIKOVA Kazan (Volga Region) Federal University (KFU), Kazan, Republic of Tatarstan, Russian Federation
777phd@rambler.ru

https://orcid.org/0000-0001-7277-9971

Ammar ALSAFADI Kazan (Volga Region) Federal University (KFU), Kazan, Republic of Tatarstan, Russian Federation
alsafadi_ammar@yahoo.com

https://orcid.org/0000-0002-4863-4649

Subject. This article examines the economic essence of inflation, its impact on the activities of companies in the Syrian Arab Republic, the indicators of financial reporting and the adjustment of its data taking into account hyperinflation on the basis of the provisions of IAS 29.
Objectives. The article aims to study the effects of inflation on the Syrian economy, identify and solve the problems of forming financial reporting in the conditions of constantly rising prices and reducing the purchasing power of the monetary unit as a result of hyperinflation.
Methods. For the study, we used the methods of observation, comparison, generalization, and interpretation.
Results. The article describes the impact of inflation on the economic activities of Syrian companies. It shows that in a hyperinflationary environment, financial reporting based on historical value is unreliable, misleading to users, and causes difficulties in making management decisions.
Conclusions and Relevance. The article confirms the hypothesis about the positive impact of the adoption of IAS 29 on the formation of financial reporting and on the analysis of its indicators in the event of hyperinflation. The significance of the study lies in the substantiation of the position that the ongoing negative changes in economic conditions caused by hyperinflation require adjustments to the indicators of reporting compiled on the basis of historical data.

Keywords: inflation, Syria, financial statements, IAS 29, analysis of indicators

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