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 in 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 Financial Accounting Standards Board (FASB) has issued guidelines regarding inflation accounting, but it is not a requirement enforced by the SEC for all companies.

Which of the Following Statements Regarding Inflation and Accounting Is