What Issue of Reporting Effects of Changing Prices Is Addressed

question 54

Multiple Choice

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

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Definitions:

Inches

A unit of measurement equal to 1/12th of a foot, used primarily in the United States and United Kingdom.

Vector Addition

A method of adding angles.

Adjacent Side

In a right-angled triangle, the side that is next to the angle in question, but is not the hypotenuse.

Opposite Side

In geometry, the side facing or diametrically opposed to a reference side in a shape or figure.