Adjustment of the effects of inflation on the financial tables and costs according to the general price level accountancy and a case study

Inflation effect the business and the accounting that is the main information source of the business negatively. In an inflationary economy, because of using the different currency units which have different purchasing power parity, financial tables which implied were traditional accounting don't show reality. Because of this, inflationary accounting models have constructed that can disinflation the effect of the price movements on the financial tables. One of these models is general price level accounting model. This model, because it pays attention to the purchasing power parity instead of the nominal value of currency, it gives a solution for the problem of measuring of traditional accounting. In this study, it has been investigated how inflation effect the business' asset - liability structure and the results of activities, following the way that the financial tables corrected by using the general price level accounting model. In addition, in profit analysis, at par analysis and budget costs that cost by using standard costs analysis, if the cost information that were corrected by the model of general price level weren't paid attention, how this problem effect the results of analysis was explained. In this purpose, the general price level accounting model was applied for Ünye Çimento A.Ş. to mass the effects of inflation on the financial tables. At the end of applying, asset structure of the business changed in favor of constant wealths, liability structure of the business changed in favor of the equities of the business. As a result, it has seen that inflation effects the Ünye Çimento A.Ş.'s asset - liability structure and the result of activities of the business highly. Inflationary losses of the business have reached an amount of a huge total year by year. This result imply that the business in turkey were effected by inflation and the financial tables that were constructed in traditional accounting ways don't show reality completely. Finally, inflationary accounting have to be applied in Turkey in the shortest time could be said.