Making decision and financial analysis in inflation period

11 ABSTRACT The effect of inflation, being an economical event and problem, on enterprises which are economic units is its causing an increase in the vagueness of facing economic decision units. To take right decisions, it needs to get over or decrease the vagueness faced by decision-makers. In the fast changing and developing economic life, the importance of information presented by accounting is getting larger. Any manager has to take the data presented by the accounting into consideration while taking decisions concerning the future. However, although the purchasing power of the money changes in inflationist periods, recording and tracing the accounting transactions through the national current monatory unit would make the data presented by accounting meaningless. The financial statements prepared in this period would not provide any help. Making the analysis related to the financial statement and activity results of the enterprise basing on financial statements shows how important are the financial statements for the enterprises. Decisions taken basing on financial statements on which the effects of the inflation is not reflected wouldn't be positive. Thus, the effects of the inflation on decisions and data provided by the accounting must be eliminated. In the inflationist atmosphere, producing healthy accounting information can be possible with accounting models accepting the changes in the purchasing power of the notional money, not with the partial correcting model. In this study, it is focused on the effects of the inflation on enterprises, the neccessity and importance of the elimination of these effects on financial statements and how to eleminate them. The is sue was applied basing on the 2000-2001 financial statements of Akçansa Çimento AŞ. In the application, financial statements of the company has been arranged according to the purchasing power of the national curret money using General Price Level Accounting Model and the differences are tried to be put out applying financial analysis techniques to arranged and historical data.