Since 2003, What Method for Supplemental Disclosure of Inflation-Adjusted Financial

question 49

Multiple Choice

Since 2003, what method for supplemental disclosure of inflation-adjusted financial statements is required of all companies affected by the IASB standards?

• A)No rule is currently in place that generally requires inflation-adjusted financial statements.
• B)General purchasing power method must be used.
• C)Current replacement cost method must be used.
• D)Companies have the option of using current cost or historical cost.

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Definitions:

Corporation by Estoppel

A legal doctrine preventing one from denying the corporate status of an entity to escape liability after having treated it as a corporation.

Novation Clause

A legal provision that allows an original contract to be replaced with a new contract, wherein a new party takes on the obligations of one of the original parties.

Office Support Staff

Employees who perform a variety of administrative and clerical tasks to support the operations of an office.

Organizational Meeting

The initial meeting held by the incorporators or directors of a new corporation to complete the formation of the corporation and to establish its internal affairs.