20 • 19Inflation Corrected Amounts
Historical AmountsAssuming a 25% Rate of InflationBalance Sheet1/1/X512/31/X512/31/X5Current assetsR$ 150R$ 450Current assetsR$450Permanent assets1,6001,600Permanent assets2,000aProvision for Depreciation(200)(200)Provision forDepreciation(300)Monetary correction(75)bCorrection of historical Charge to P&L(25)c(400)______________________________TotalR$ 1,550R$ 1,750TotalR$ 2,050__________________________________________________Current liabilitiesR$50R$50Current liabilitiesR$50Long-term debt400400Long-term debt400Equity:EquityCapital800800Capital800Capital reserve200dReserves300300Reserves375eProfit of period200Profit of period225_________________________TotalR$ 1,550R$ 1,750TotalR$ 2,050__________________________________________________Exhibit 20.10.Brazilian Example of Inflation Adjustments.(continued)