Inflation And Tools Of Financial Analysis In Greece 1973-1983

At a time when FASB 33 Financial Reporting and Changing Prices is being reconsidered it may be appropriate to examine accounting for inflation in a different setting. The U.S. has never experienced the hyper or even maxi inflation rates of countries. Undoubtedly, this accounts for the lack of continued interest in this problem. For example, in the U.S. following World War II, there was substantial interest in the topic by both the American Institute of CPAs and the American Accounting Association, but this interest waned as the anticipated rise in prices failed to occur.But the usefulness of a solution to this problem should not b based solely on the economic conditions at the time of the review. The real issue of usefulness is a more general one. Would statements adjusted for changes in prices produce more useful information? Would the tools of analysis such as financial ratios be significantly different if based upon adjusted rather than unadjusted data?To examine this issue in a more useful setting than in the U.S., fifteen companies in Greece were selection as the basis for this study.