What issue of reporting effects of changing prices is addressed by IAS 29, issued by the International Accounting Standards Board in 1989?
A)Choice between current replacement cost and general purchasing power method
B)Making inflation-adjusted reporting optional or required
C)Specifying the European Central Bank as the official source of inflation rates in the European Union
D)Mandating inflation adjustment for primary financial statements of companies in hyperinflationary economies

Question

Quizplus · Accepted Answer

IAS 29, issued by the International Accounting Standards Board in 1989, mandates inflation adjustment for primary financial statements of companies in hyperinflationary economies. This standard provides guidance on how to report financial information in economies with hyperinflation, where changes in the general price level are so significant that they distort the comparability of financial statements.

What Issue of Reporting Effects of Changing Prices Is Addressed