Exercise of inflation accounting effects on financial rates, Eskisehir sample

The inflation factor has been found to have a significant effect on a company?s financial structures, and accordingly financial ratios. The effects of inflation theory is observable upon a company?s financial structures, management, cross tabulation/ comparison between individuals, and the national economy. Globally, studies have been conducted to determine a way in which to dampen the effect of inflation on companies? financial structures, as well as the feasibility of this, firstly in developed countries and then in developing countries. In order to traverse the effect of inflation on financial statements, the practice of inflation accounting was implemented in Turkey roughly in 2004. In this study, it has been driven benefit from the balance sheet records of 48 companies in Eskisehir. The differences of this company?s financial rates before and after 2004 inflation accounting practice and its potential reasons have been analyzed.