The Financial Accounting Standards Board has codified a workaround blessed by the Securities and Exchange Commission for companies that may have ended up with some odd results in accounting for activities in Venezuela, where the economy is considered inflationary.
FASB published Accounting Standards Update No. No. 2010-19 to update the rules in Accounting Standards Codification Topic 830 on Foreign Currency to reflect an SEC staff announcement made at a March meeting of FASB’s Emerging Issues Task Force. The SEC previously addressed inflationary accounting through an alert published by the Center for Audit Quality.
