SEC Top Accountant Flags Inflation Accounting Amid Price Rises

Corporate accountants should dust off accounting rules rarely tapped since the 1980s to keep investors informed of the impact surging prices could have on their financial position, the SEC’s top accountant said Monday.

Accounting standards that describe how to report the effect of changing prices, while not required, offer “something to think about,” as companies grapple with inflation and a myriad of other economic pressures, Paul Munter, acting chief accountant at the Securities and Exchange Commission, said.

Amid rising interest rates, wage hikes, and ongoing supply chain disruptions, companies should also flag estimates, assumptions, and valuations that are susceptible to ...