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International Accounting

Generation of profit and loss statements by Syrian companies in the context of hyperinflation

Vol. 26, Iss. 3, MARCH 2023

Received: 19 January 2023

Received in revised form: 2 February 2023

Accepted: 6 February 2023

Available online: 15 March 2023


JEL Classification: М41

Pages: 244–271


Lidiya I. KULIKOVA Kazan (Volga Region) Federal University (KFU), Kazan, Republic of Tatarstan, Russian Federation


Ammar ALSAFADI Kazan (Volga Region) Federal University (KFU), Kazan, Republic of Tatarstan, Russian Federation


Subject. This article deals with the issues related to the preparation of the Profit and Loss Statement by companies of the Syrian Arab Republic, taking into account consumer price indices in the context of hyperinflation, based on the provisions of IAS 29 – Financial Reporting in Hyperinflationary Economies.
Objectives. The article aims to identify and find a solution to the problems of generating the Profit and Loss Statement, as well as develop appropriate methodological recommendations.
Methods. For the study, we used observation, comparison, grouping, classification, generalization, and interpretation. Scientific works and publications of scientists on the theory of inflation and hyperinflation, the Central Bureau of Statistics (Syria) (CBS) data on consumer price indices, provisions of IAS 29 on the formation of reporting by organizations whose functional currency is the currency of the hyperinflationary economy, are the methodological basis of the study.
Results. The article presents a test of the methodology for compiling the Profit and Loss Statement taking into account the recommendations of IAS 29 and shows the process of reporting using the materials of the Syrian Al-Ahlia Vegetable Oil Company. It also reads about the impact of hyperinflation on the items of the company's Profit and Loss Statement and its financial results, and compares the reporting data with indicators calculated on the basis of historical information. The article confirms the hypothesis that it is necessary to form a Profit and Loss Statement on the basis of the provisions of IAS 29 in the event of high inflation.
Conclusions. In the context of hyperinflation, financial statements based on historical cost are unreliable, mislead users, and cause difficulties in making management decisions. A positive financial result determined through the historical cost principle, is a fictitious profit.

Keywords: profit and loss statement, IAS 29, hyperinflation, Syria


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ISSN 2311-9381 (Online)
ISSN 2073-5081 (Print)

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Vol. 26, Iss. 3
March 2023