ARTICLE | June 29, 2023
The Center for Audit Quality (CAQ) SEC Regulations Committee and its International Practices Task Force (the Task Force) periodically accumulate and discuss certain inflation data to assist companies in monitoring inflation statistics in connection with their determination of the inflationary status of countries in which they have operations. The most recent discussion document that represents the accumulation of information used to facilitate a discussion among the Task Force members is available on the CAQ’s Website. Of particular note in the most recent discussion document is the addition of Haiti to the category of countries whose three-year cumulative inflation rates exceed 100%, and the addition of Ghana, Sierra Leone and Sri Lanka to the category of countries with projected three-year cumulative inflation rates greater than 100% in the current year.
The discussion document categorizes the countries based on their cumulative inflation rates and implementation guidance in Topic 830 of the Financial Accounting Standards Board’s Accounting Standards Codification (ASC), Foreign Currency Matters. The countries included in the discussion document are those for which the International Monetary Fund (IMF) publishes data. Accordingly, there may be other countries that are not mentioned in the Task Force discussion document because the IMF does not include inflation data for all countries.
The information in the discussion document may be helpful to financial statement preparers in applying ASC 830, in conjunction with their internal controls over financial reporting, to reach a conclusion on whether a country’s economy should be considered highly inflationary. Financial statement preparers should be especially prudent when monitoring inflation data in countries where there is a concern about the reliability of the inflation data.
Do you have questions or want to talk?
Call us at (800) 232-9547 or fill out the form below and we’ll contact you to discuss your specific situation.
This article was written by RSM US LLP and originally appeared on 2023-06-29.
2022 RSM US LLP. All rights reserved.
RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each are separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/aboutus for more information regarding RSM US LLP and RSM International. The RSM(tm) brandmark is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.
Insero & Co. CPAs, LLP is a proud member of RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.
Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise, and technical resources.
For more information on how Insero & Co. CPAs can assist you, please call (800) 232-9547.
