IASB proposes severe hyperinflation amendment to IFRS 1
29 Sep 2010
The International Accounting Standards Board (IASB) today published for public comment an exposure draft 'Severe Hyperinflation', a proposed amendment to IFRS 1 'First-time Adoption of International Financial Reporting Standards'.
The amendment proposes guidance on how an entity should resume presenting financial statements in accordance with International Financial Reporting Standards (IFRSs) after a period when the entity was unable to comply with IFRSs because its functional currency was subject to severe hyperinflation. According to the proposed amendment an entity that has been subject to severe hyperinflation would be allowed to measure assets and liabilities at fair value and use that fair value as the deemed cost of those assets and liabilities in the opening IFRS statement of financial position.
The exposure draft is open for comment until 30 November 2010. Click for: