Financial Education | Accounting and financial features in hyperinflationary economies

[alaiza]

The principal financial statements in hyperinflationary economies, whether individual or consolidated The main financial statements, whether individual or consolidated, of any company that prepares and presents them in the currency of a hyperinflationary economy. The state of hyperinflation is indicated by the characteristics of the country's economic environment.

Source ( internationalman. )

In those states with hyperinflationary economies, the general population prefers to keep its wealth in the form of non-monetary assets, or in a relatively stable foreign currency; moreover, the amounts of local currency obtained are immediately invested to maintain the purchasing power of the same.

On the other hand, the general population does not consider monetary amounts in terms of local currency, but views them in terms of another relatively stable foreign currency; prices can be set in this other currency.

In turn, sales and purchases on credit take place at prices that compensate for the expected loss of purchasing power during the postponement, even when the period is short.

Source ( freshbooks )

Not least, interest rates, wages and prices are linked to the evolution of a price index; and the cumulative rate of inflation as the crisis progresses tends to approach and in some extreme cases exceeds 100%.

_{Transformational leadership and contextual performance are the main factors that most influence organizational culture.}

If you wish to expand on the subject, please visit this link

Comments

[hivebuzz]

Congratulations @alaiza! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)

You published more than 500 posts. Your next target is to reach 550 posts.

_{You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP}

To support your work, I also upvoted your post!

Check out the last post from @hivebuzz:

	HiveBuzz World Cup Contest - Round of 16 - Recap of Day 2
	Our Hive Power Delegations to the November PUM Winners
	HiveBuzz World Cup Contest - Recap of the last day of the group stage.

Support the HiveBuzz project. Vote for our proposal!

[ecency]

Yay! 🤗
Your content has been boosted with Ecency Points, by @alaiza.
Use Ecency daily to boost your growth on platform!

Support Ecency
Vote for new Proposal
Delegate HP and earn more

[alaiza]

Great value for this app.

[edu-venezuela]

Congratulations your publication has been chosen among the best of the day.

KEEP CREATING GOOD CONTENT.

[alaiza]

Thank @edu-venezuela