Before the Inflation Accounting application, companies were revaluating their fixed assets in order to revaluate fixed assets subject to depreciation with current currency due to losses of purchasing power, and were reflecting this revaluation difference on their balance sheets in line with regulations. However, since it is possible with inflation accounting to adjust a tangible fixed asset according to the general price level, the revaluation increases added to the cost of the related asset must be deducted before inflation accounting adjustments. Otherwise, double revaluation and erroneous adjustment results would occur.
The depreciation tables according to inflation accounting are generated using Depreciation Table (Inflation Accounting) option located in the right mouse button menu of the Fixed Asset Records list. This table contains most of the depreciation table parameters, but does not cover revaluations. In this way, tables can be calculated without processing the revaluation according to inflation accounting, even if the fixed asset is already revaluated.
The calculations using the Inflation Accounting Alternative Depreciation Table can be performed for the related fixed asset record without processing revaluation parameters.
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