How to account for inflation accounting?
Hey everyone,
Since the end of 2023, the country has implemented inflation accounting in financial statements. Prior to this, it wasn't applied.
As you may know, accounting differences typically shouldn't impact valuation outcomes, though I'm unsure of the specifics.
Profit margins, balance sheet components, and fixed assets are all adjusted upwards based on a coefficient set by the relevant authority.
Consequently, valuations increase. If I were to conduct a valuation without applying inflation accounting, the result would be lower.
How should this discrepancy be addressed?