If a firm has a complex capital structure,GAAP requires that both basic and fully diluted earnings per share must be reported.

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This statement is true. GAAP (Generally Accepted Accounting Principles) requires that both basic and fully diluted earnings per share must be reported for firms with complex capital structures, such as those with convertible securities or stock options. Basic earnings per share is calculated using the weighted average number of outstanding common shares, while fully diluted earnings per share takes into account the potential dilution from all convertible securities and stock options.

If a Firm Has a Complex Capital Structure,GAAP Requires That