inflation techniques

Inflation techniques are methods used to increase a company's revenue or asset values on financial statements. They can include accounting practices like adjusting asset values to reflect higher market prices, or projecting future earnings to boost current figures. Sometimes, companies reclassify expenses or change depreciation schedules to enhance profitability. These techniques aim to present a healthier financial picture, but if not transparent, they can mislead investors about the company's true financial position. Essentially, inflation techniques manipulate financial data to make a company appear more valuable or profitable than it genuinely is.