1887

n South African Journal of Economic and Management Sciences - IAS15 inflation adjustments and EVA : empirical evidence from a highly variable inflation regime : inflation

USD

 

Abstract

Inflation can have a pronounced effect on the financial performance of a firm. This study makes inflation adjustments to a firm's cost of sales, depreciation, level of gearing and assets in line with International Accounting Standard 15 (IAS15) in order to calculate an inflation-adjusted version of the economic value added (EVA) measure. The study was conducted using data from South African industrial firms during a period characterised by highly variable inflation levels (1991-2005). The results indicate that during this period there were significant differences between the nominal and real values of the firms' EVAs.

Loading

Article metrics loading...

/content/ecoman/12/2/EJC31283
2009-06-01
2016-12-03
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error