The inflation adjustment must be performed after discriminating Non-Real Financing Costs (exchange rate difference, due date difference, loan interest, etc) on Fixed Assets acquired within the last five accounting periods (fiscal years) and removing the related amount.
Non-real financing cost (ROFM) indicates the amount calculated by applying the yearly WPI rate to any debit amounts.
On the other hand, since investment costs should be separately recorded and adjusted on the report date in every phase of Ongoing Investments, the investment dates and amounts have to be entered as well.
ROFM and yearly cost values are entered using Yearly Cost and ROFM input option located in the right mouse button menu of the Fixed Assets record window. This option is located in the right mouse button menu when Yearly Cost is used.
The window that opens is used to record dates, cost amounts and non-real financing cost amounts on related lines. The calculated non-real financing cost is subtracted from the cost of the fixed asset, and the result provides the basis for inflation accounting. This amount is used in inflation adjustment.
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