Challenges of Applying the Accrual Basis under Inflation and Its Impact on the Credibility of Financial Statements (An Analytical Study of Telecommunication Companies Operating in El-Obeid City)

This study addresses the challenges associated with applying the accrual basis of accounting under conditions of inflation and its impact on the credibility of financial statements. The central research problem is framed as follows: Do the challenges of applying the accrual basis under inflation affect the credibility of financial statements? The study aims to examine the influence of variations in accounting policies during inflationary periods on the credibility of banks' financial statements, and to highlight the role of accounting estimates under inflation and their impact on financial statement reliability. The study examined the following hypothesis: Accounting estimates under inflation significantly affect the credibility of banks' financial statements. Among the key findings: financial statements containing estimates not adjusted for inflation exhibit reduced comparability across financial periods. Based on these findings, the study provides several recommendations, including telecommunications companies should offer detailed disclosures on the impact of inflation on the components of their financial statements.