Why inflation accounting is NOT required in the United States and the United Kingdom since late 1980s?
A)Accounting regulators in the U.S.and U.K.have not addressed the issue of inflation accounting in their pronouncements.
B)Inflation is insignificant in the U.S.and the U.K.since late 1980's.
C)Accounting regulators could not agree on a method for adjusting financial statements for the effect of inflation.
D)Corporations in the U.S and U.K.voluntarily report inflation-adjusted financial statements, making the regulations unnecessary.

Question

Quizplus · Accepted Answer

Inflation became insignificant in the U.S. and the U.K. since the late 1980s, therefore, inflation accounting was no longer required.

Why Inflation Accounting Is NOT Required in the United States