IAS 29 Hyperinflation

Date recorded:


Accounting for inflation is dealt with in IAS 15 Information Reflecting the Effects of Changing Prices and IAS 29 Financial Reporting in Hyperinflationary Economies. IAS 15 encourages the voluntarily provision of supplementary information on changing prices, whereas IAS 29 requires the financial statements to be restated when certain criteria of hyperinflation are met. The Board proposed in its Improvements project to withdraw IAS 15. Further, accounting for inflation is included in the Board’s short-term Convergence Project.  The IFRIC discussed various issues regarding accounting for high and hyperinflation, in order to provide the Board with input to the Improvements and Convergence projects, including:

• The potential absence of guidance on accounting for high inflation in the context of the proposed withdrawal of IAS 15

• Determining when an economy is hyperinflationary

• Practical matters raised with the IFRIC Agenda Committee, including what constitutes a general price index and presentation of comparative figures on first adopting IAS 29.


Decision not to add

November 2002



The IFRIC agreed on a number of specific recommendations for the Board to consider in its Improvements and Convergence projects

IAS 15 was withdrawn as a result of the Improvements project.  Practical issues in applying IAS 29 are being addressed as part of the IFRIC draft Interpretation D5 “Applying IAS 29 ‘Financial Reporting in Hyperinflationary Economies’ for the First Time”.


IFRIC reference: IAS 29

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