Resumen

DE LA HOZ, Betty; UZCATEGUI, Sigilfredo; BORGES, Jesús  y  VELAZCO, Angel. Inflation as a Distorting Factor in Financial Information. Revista Venezolana de Gerencia [online]. 2008, vol.13, n.44, pp.556-572. ISSN 1315-9984.

The purpose of this study is to analyze inflation as a factor that distorts financial information. The research centers on inflation-measuring techniques and the beginning of the process for updating or re-expressing historical data produced by the financial statements, as well as its incidence on the Venezuelan scene for the year 2006. A documentary, bibliographical review was made based on the theoretical and statistical fundamentals of: Fernández (2002), Catacora (2000), Yanes (2006), and the Central Bank of Venezuela (2006), among others, regarding inflation, its measurement, calculation and incidence. Results indicated how the monetary unit in Venezuela has lost its purchasing power as a product of the inflationary phenomenon, which is reflected in the financial information of the companies. Conclusions are that the financial statements of a company constitute the principal means for communicating information about its financial situation and operational results for making decisions; nevertheless, in inflationary economies, accounting date based on historic costs presents distorted information that is hardly truthful, up-to-date, relevant or precise. Therefore, it is recommended to update financial statements for inflationary effects.

Palabras clave : Financial information; purchasing power; inflation; consumer price index; monetary and non-monetary items.