Financial Information. Its Comparability Within the Inflationary Environment of Average-Size Enterprises

Abstract

The aim of this paper is to address basic conceptual elements leading to a temporary comparison of financing status information. Comparability, as a qualitative feature of financial information, is dealt with. Recognition of transactions, internal transformations, and events as a premise to compare average-size enterprises financing status over a period of time is considered. Effects of inflation on financial information are stated. Consumer price index, the only technique applied in cases of reexpression and inflation, is insufficient by itself. In terms of macroeconomics, this index is nonsignificant, but it does affect microeconomics, so it must be taken into account in making entrepreneurial decisions.