This eliminates the need to buy or sell stocks in order to profit from the financial market's gains. Financial statements with a historical basis could be deceptive when there is a lot of inflation. It's possible that a lot of resources were obtained at times when the value of the money was substantially higher. Afterwards, these costs are usually subtracted from revenues that represent current purchasing power. The income figure that is produced is meaningless. The value of assets represented at their original acquisition cost is sometimes overstated due to inflation, which presents another challenge for statement readers.Overstated earnings and understated expenses are the results of undervalued assets. Since trend statistics typically include monetary units with varying purchasing power, financial trends are particularly challenging to evaluate. Price adjustments, not actual increases, may be the cause of a positive trend in sales