Profit – Loss Table

"All income and expense factors of income statement are stated in accordance with purchasing power of money on balance sheet date. Hence all income and expense factors are re-stated according to values incurring depending upon general price indices as of their record date." (TAS 2, article 16)

The purpose of adjusting profit/loss table according to inflation is to ensure homogeneity and comparability within table, as it is ensured in other fiscal tables.

Report Filters

In order to get profit/loss table values adjusted according to inflation, "Printing Restated Values: Yes/No" filter line located in report filters is used. Default value of this filter lines is "No".

If filter value is "Yes", you must select "local" option in "Calculation: Local/In FC" filter lines in order to get a list of adjusted values.

Adjusted Profit/Loss Table Values
In both comparable and non-comparable profit/loss tables, profit/loss table design is updated in order to get a list of inflation adjusted values.

In order to get adjusted values, account transactions conforming to profit/loss table period and "account amount" parameter are adjusted one by one. When performing adjustment transaction, historical values (transaction value) are multiplied with a specific adjustment factor. Adjustment factor is found with the following formula (with the same method used in balance sheet):

Adjustment factor = Balance sheet end month indices/transaction indices
Adjusted amount= Historical value * Adjustment value

Steps followed when performing adjustment for profit/loss table are the same with transaction steps performed for balance sheet. So,

According to income table report end month for period income table, previous period income table items are adjusted according to their own period-end and report end month respectively in comparative balance sheet.

Net Monetary Position Profit/Loss Account

In conventional accounting, losses incurred due to retaining monetary values on hand and profits incurred for acquired earnings are not reflected to income statement. In inflation accounting, an item (net monetary position profit/loss) added to income statements and these earnings/losses are reflected to income statement. So changes related to the purchasing power of money are reflected to profit/loss account.

Application will not calculate value of this item automatically. User must add this item to table manually by selecting "amount" type, and acquire item's value from Net Monetary Position Profit/Loss Table report in order to calculate its value.