Alternative accounting measurement methods for inflation accounting

Abstract

The aim of the research is to indicate the negative effects caused by the rise in general levels of prices on the lists of economic units when the economic unit ignores that rise, and to indicate the impact of this on the result of the business of the economic unit and its financial position, through the statement of the impact on the items of the financial statements, as the research took into account the application of International Accounting Standard 29 in Inflation Periods and a statement of the use of any correct accounting methods in the accounting measurement process, and in order for the economic unit to obtain measurement results closer to the truth, it must abandon the historical measurement method and use the accounting methods contained in International Accounting Standard 29, for historical figures in inflation periods do not Reflects the true picture of the reality of economic units. The modified historical cost was used to modify the financial statements of the economic unit in question, using the index numbers for the study period and published by the Iraqi Ministry of Planning - the Central Statistical Organization, and all non-monetary items included in the financial statements were modified based on what was stated in the International Accounting Standard 29 And a business result and a financial position that is closer to the reality of the economic unit in question was reached, which can be relied upon in making decisions, as it reflects the reality of the economic unit in that period. The research came to the conclusion that the application of International Accounting Standard 29 in periods of inflation and the use of alternative accounting methods for the historical cost have an impact on giving a clearer picture of the reality of the economic unit in periods of rise in general price levels

The research recommended the necessity of applying economic units to accounting for inflation and taking into account the effects caused by inflation.