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:

Amount

The amount stated on the monetary item (for example, the principal of a bill of exchange or an invoice amount)

Days

The number of days between the balance sheet date and the item's due date.

Interestrate

The interestrate that you have maintained in the interestindicator, expressed as a percentage.

You are preparing a balance sheet for December 31. You have a bill of exchange receivable forTRY 913,300 that is due the following February 9, that is, 40 days after the balance sheet date. The interestrate is 80%. You therefore calculate inflation as follows:

The inflation adjustment for this bill is thus TRY 800.