Inflation Calculation Formula 
Inflation Calculation Formula
Use
This is the formula that the
Inflation Adjustment of Monetary Items report uses to calculate inflation.Features
The report uses the following formula to calculate the inflation:
The factors involved in this formula are as follows:
The amount stated on the monetary item (for example, the principal of a bill of exchange or an invoice amount)
The number of days between the balance sheet date and the item's due date.
The inflation rate that you have maintained in the inflation indicator, expressed as a percentage.
You are preparing a balance sheet for December 31. You have a bill of exchange receivable for TRL 913,300 that is due the following February 9, that is, 40 days after the balance sheet date. The inflation rate is 80%. You therefore calculate inflation as follows:
The inflation adjustment for this bill is thus TRL 800.