What is the greatest difference between Mexican accounting practice and American accounting practice?

Question

Quizplus · Accepted Answer

The treatment of inflation effects on financial statements is the greatest difference between Mexican accounting practice and American accounting practice. Mexican accounting standards require that financial statements be adjusted for inflation, which is not currently required in American accounting practice. Inflation adjustments aim to reflect the monetary purchasing power of assets and liabilities, and income and expenses, in the financial statements.

What Is the Greatest Difference Between Mexican Accounting Practice and American