Student Forums CMA Part 2 Section A: Financial Statement Analysis A.4. Special Issues Adjustment financial statement to remove inflation

Adjustment financial statement to remove inflation

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by Lynn Roden.
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  • #216937
    Sa Bina
    Participant

    Dear all,

    Is the adjjsutment of financial statement to remove inflation mandatory according to Gaap ? Or is it only a recommendation for analysing ratios ?

    Regards
    Sabina

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  • #216942
    Lynn Roden
    HOCK international

    Hi Sa Bina,

    Adjusting financial statements to remove inflation is only an analysis technique. The published financial statements are not changed to remove inflation under U.S. GAAP.

    Lynn

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