IFRIC issues draft interpretation on hyperinflationary reporting
Mar 11, 2004
IAS 29 'Financial Reporting in Hyperinflationary Economies' requires that the financial statements of an entity that reports in the currency of a hyperinflationary economy must be stated in terms of the measuring unit current at the balance sheet date.
Comparative figures for prior period(s) should be restated into the same current measuring unit.
The IFRIC has released Draft Interpretation D5, Applying IAS 29 Financial Reporting in Hyperinflationary Economies for the First Time, which contains guidance on how an entity would restate its financial statements in the first year it identifies the existence of hyperinflation in the economy of its functional currency. Comment deadline is 14 May 2004.