IAS 29 Financial Reporting in Hyperinflationary Economies
International Accounting Standard 29
Overview of IAS 29
- Issued: in 1989; re-formatted in 1994, followed by amendments
- Effective date: 1 January 2009
- What it does:
- It prescribes rules for financial reporting of any entity whose functional currency is the currency of hyperinflationary economy.
- It requires to state all the amounts in terms of measuring unit current at the end of the reporting period.
- General price index shall be applied to restate the amounts stated in historical or transaction-date costs.
- It provides further guidance on how to restate monetary and non-monetary assets and liabilities, equity components, profit or loss and other comprehensive income, cash flows and comparative information.
- It prescribes the reporting rules when the economy stops being hyperinflationary and number of disclosures, too.
Articles about IAS 29
- Summary of IAS 29 Financial Reporting in Hyperinflationary Economies
- Monetary or non-monetary? In this article, you’ll learn which items in the balance sheet are monetary and non-monetary, with a couple of examples.
Questions and Answers
- Which closing rate to apply? – in this podcast I explain which currency rate to use for year-end translation when more rates are available.
- How to capitalize exchange rate differences on your loan as a borrowing cost?
- How to determine a functional currency when a company deals with more currencies?
Other Resources
- IFRS Kit – learn IFRS in 150+ videos, 150+ excel case studies, quizzes, certificates
- Expected Credit Loss for Accountants – highly specialized course focused on ECL under IFRS 9 with step-by-step example related to trade receivables, many practical insights included.