Which of the following statements regarding inflation and accounting is false?
A)The SEC requires U.S.companies to present supplemental financial information adjusted for the effects of inflation.
B)Instability of the measuring unit that is the currency occurs in countries with rampant inflation.
C)In some Latin American and South American countries,companies have been required to adjust their financial statements to take into account the effects of inflation.
D)The FASB developed rules for companies in the United States to use to adjust for inflation.

Question

Quizplus · Accepted Answer

The SEC does not require U.S. companies to present supplemental financial information adjusted for the effects of inflation. This is a common misconception. The FASB (Financial Accounting Standards Board) has discussed inflation accounting in the past, but there is no current requirement for U.S. companies to adjust their financial statements for inflation.

Which of the Following Statements Regarding Inflation and Accounting Is