In the Year of a Change in an Accounting Policy

question 64

True/False

In the year of a change in an accounting policy, the change and its impact must be disclosed in the notes to the financial statement.

---

Definitions:

Translated

In accounting, the process of converting the financial statements of a foreign subsidiary to the parent company's reporting currency.

Highly Inflationary Economy

An economy experiencing rapid and excessive inflation rates, often leading to adjustments in financial reporting and monetary policy.

Functional Currency

The form of monetary exchange prevalent in the primary economic zone where an organization engages and creates cash flow.

Exchange Rate

The rate at which one currency can be exchanged for another currency, affecting international trade and investments.