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SIC-19 — Reporting Currency – Measurement and Presentation of Financial Statements Under IAS 21 and IAS 29


  • IAS 21 The Effects of Changes in Foreign Exchange Rates
  • IAS 29 Financial Reporting in Hyperinflationary Economies


  • Issued: November 2000
  • Effective date: Annual financial periods beginning on or after 1 January 2001
  • Superseded by IAS 21 The Effects of Changes in Foreign Exchange Rates (Revised 2003), effective for annual periods beginning on or after 1 January 2005.

Summary of SIC-19

SIC-19 emphasises that the currency an enterprise uses in measuring items in its financial statements should be selected to provide information about the enterprise that is useful and reflects the economic substance of the underlying events and circumstances relevant to that enterprise. All other currencies are treated as foreign currencies in the measurement of items in the financial statements and translation of financial statements. It follows that an enterprise does not have an arbitrary choice to avoid restatement under IAS 29 of financial statements which are measured in the currency of a hyperinflationary economy.

For example, assume a Russian enterprise uses the Russian Rouble as an appropriate currency for measurement of items in its financial statements. The enterprise determines the treatment of foreign exchange transactions under IAS 21 and it also restates those financial statements under IAS 29 if circumstances indicate that the Rouble is the currency of a hyperinflationary economy. However, the enterprise is not precluded from converting those financial statements to another currency for presentation, for example converting those financial statements to be presented in German Marks.

Click for IASC Press Release on SIC-19 (PDF 33k)

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.