Adjusting the financial tables of underwriter`s according to the inflation accounting and a sample application

Inflation has been a serious problem for many countries. It has lots ofbad effects to total country economy. Its first effect is making decreased thebuying ability of citizens. But inflation has much more complex effects tobigger units of an economy. It is known that firms are key units for everycountry. Because firms have three critical functions; helping citizens to earnmoney as using labour, producing goods and services and paying taxes tostate which is the most important income of a state. Inflation is a bighandicap for firms to make future plans. It also makes financial tables invalid.Therefore investments can not be so possible in an economy which hasinflation. Also inflation creates an economical environment which firms haveto pay taxes because of non-real incomes. Even it is not possible to eliminateall effects of inflation there are some methods to make financial tables moremeaningful and comparable. Adjusting financial tables by using inflationaccount system is the only key to achieve this goal. In our study, we adjustedthe financial tables of an Underwriter. Because of the structure of the assetsand liabilities in Underwriters, inflation accounting has vitally importance.Results showed us in an economy which exists high inflation; financial tablescan not give right information to us. Especially incomes in financial tables arefar away to show the real incomes from activities of the firm and caused topay more taxes. Therefore may be not for eliminating inflation but it isnecessary to use inflation account system for eliminating effects of inflation. Itwill be so useful to save firm?s capital and to increase investments in aneconomy by eliminating indefiniteness.