1. What type of inflation accounting do you favor under high inflationary periods? (1 Paragraph)
2. Do you think tax allocation can improve the prediction of future tax payments in the short run? (1 Paragraph)
3. What are the economic consequences of SFAS No.87? (1 to 2 Paragraphs)
(1) Inflation accounting (also called price level accounting) is similar to converting financial statements into another currency using an "exchange rate" (contrary to fair value accounting). In finance, the exchange rates between two currency specifies how much one currency is worth in terms of the other. It is the value of a foreign nation's currency in terms of ...
The type of inflation accounting that favors under high inflationary periods are determined. The tax allocation which can improve the prediction of future tax payments in the short run are analyzed.