Modeling Income of Inflation

Abstract

Financial result (profit or loss) achieved by a company at the end of accounting period (usually, a year) can be calculated in different ways. Most of national economies deal with inflation. Therefore, the impact of inflation can be separated and calculated. Some typical models used for this aim are analyzed in the paper. It is argued in the paper that for the correct treatment of inflation income, some legislative and methodological aspects of correlation between profit, reserves and dividends should be taken into consideration.

Keywords:

Inflation