deflator index - an economic indicator, which is used to convert the value of property companies.
In terms of macroeconomic indicators, it is used to adjust the value of GNP (gross national product), taking into account changes in prices.GDP deflator is formed based on the spent state funds for the purchase of raw materials and capital goods, as well as the funds obtained from the sale of goods and services in the global and domestic markets.When comparing these figures, and formed deflator, which, depending on changes in price, too, is changing.
general term "deflator" implies some definitions:
-Deflyator GDP (gross domestic product) is used for determination of the prevailing price in the domestic market, based on the calculation of the price index.
-Deflyator GNP (gross national product) is defined as the ratio of the index of the previous year to the current.
-Deflyator income (price) - an indicator of the level of prices for the current year to the previous one.
deflator index, according to the Government Decree of the Russian Federation, is set for a calendar year, based on the calculations of price increases this year.
The Russian economy deflator index began to be used from 1996 as a measure of average prices of property companies (fixed assets, tangible assets, current assets).
To calculate the deflator was developed jointly guide the Russian Statistics Committee, Ministry of Finance, Ministry of Economy of the Russian Federation approved 21.05.96g.Its use is directly related to the definition of the taxable base of corporate income tax.While the crisis of the Russian economy inflation occurred at a high rate, so conversion indices on a quarterly basis.
Recalculation of the value of assets such as fixed assets, performed consistently with the changes deflator.If, for example, the object was acquired in January 1996., But dropped out in order to implement at the end of the same year, the residual value of the object will be adjusted to the appropriate deflator.If the receipt and disposal of fixed assets held in the same quarter, the recalculation is done.Profits from the sale of property can be determined by the formula:
P = CR - (BS x L), where
P - profit from the sale;
CR - selling price;
BS - book value;
D - deflator.
the sale of property income can not be, that is,its implementation may be equal to the book value or below.In this case, the conversion rate of inflation is not applicable.For the revaluation of the carrying value of fixed assets deflator index began to be applied from 1998.
The following table describes the degree of change in inflation indices for 4 years (1996-1999) on a quarterly basis.
| year | Q1 | Q2 | Q3 | Q4 |
| 1996 | 113,3% | 108,3% | 105,2% | 103,5% |
| 1997 | 101,6% | 101,2% | 101,8% | 100,6% |
| 1998 | 102,5% | 102,3% | 103,9% | 107,2% |
| 1999 | 108,3% | 108,6% | 112,7% | 110,1% |
In view of these indicators and are revaluedproperty companies, except securities, shares, intangible assets, currency.
at a government meeting on 1.10.2008g., Examined the concept of long-term socio-economic development of the Russian Federation until 2020. On the basis of which the companies plan long-term projects in construction and services.
