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IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies

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Standard 2022 Issued
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Under IAS 29, the financial statements of an entity whose functional currency is hyperinflationary must be stated in terms of the measuring unit current at the financial reporting date (ie must be inflation-adjusted). Comparative figures for prior period(s) should be restated into the same current measuring unit. IFRIC 7 clarifies how an entity restates its financial statements in the first year of hyperinflation.

Standard history

In November 2005 the International Accounting Standards Board issued IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies. It was developed by the Interpretations Committee.