Politik Ekonomik Kuram

Abstract

Public institutions are among the oldest institutions in the historical process. With this deep-rooted structure, their operations are recorded and under public scrutiny. Today, public institutions prepare many financial and non-financial reports and share them with the public. Therefore, oversight and auditing activities are continuously performed by both public institution managers and society, making comparability easier. In terms of countries and on a global scale, concepts such as transparency, accountability and comparability no longer apply only to the private sector but also to public institutions and the countries’ national accounts. These concepts are possible with the existence of an accurate, up-to-date, comparable, and holistic accounting system. If the values of movable and immovable assets in inventories are not updated, financial reports will be insufficient to reflect current values. The excessive decline in the purchasing power of money, especially during periods of high inflation, will render the financial statements meaningless. Consequently, it will not be possible to interpret and compare financial statements. In this case, wrong and incomplete decisions will be taken in planning and policy development for the future. In the study, the emergence, importance, and objectives of national and international government accounting standards are mentioned, and the application of government inflation accounting in Türkiye is explained with sample applications. The study aims to guide the practitioners of inflation accounting in public institutions in Türkiye and to fill the gap in the academic field of inflation accounting in public institutions.