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Former Member
Sep 04, 2007 at 11:04 AM

ABAON and Inflation Management



we have a problem with our company in Chile and Mexico, we use the inflation management for this countries. We have a separate depreciation area for the inflational valuation. If we sell an asset with revenue we get the following problem:

Original area: acquisition cost 50

inflation area: acquisition cost from revaluation 5

We sell the asset for 100, we get in:

Original area: revenue 50

inflation area: revenue 95 --> this sould be -5, because the complete revenue is 100-55= 45.