Chapter 18

Hyperinflation

1 Introduction

1.1 Background

1.2 Hyperinflationary economies

1.3 Adjustment approaches

1.4 The introduction of IAS 29

2 The Requirements of IAS 29

2.1 The context of IAS 29

2.2 Scope

2.3 Definition of hyperinflation

2.4 The IAS 29 restatement process

3 Selection of a General Price Index

3.1 Selecting a general price index

3.2 General price index not available for all periods

4 Analysis and Restatement of Balance Sheet Items

4.1 Monetary and non-monetary items

4.1.1 Monetary or non-monetary

4.1.2 Monetary items

4.1.3 Non-monetary items carried at current cost

4.1.4 Non-monetary items carried at historical cost

4.2 Inventories

4.3 Restatement of investees and subsidiaries

4.4 Calculation of deferred taxation

4.5 Restatement of equity

5 Analysis and Restatement of Items in Other Primary Financial Statements

5.1 Restatement of statements of comprehensive income (and income statements if presented)

5.1.1 Restatement of interest and exchange differences

5.2 Calculation of the gain or loss on the net monetary position

5.3 Restatement of the statement of cash flows

5.4 Restatement of the corresponding figures

6 Interim Reporting

7 Transition

7.1 Economies becoming hyperinflationary

7.2 Economies ceasing to be hyperinflationary

7.3 Economies exiting severe hyperinflation

7.3.1 Scope of the severe hyperinflation exemption

7.3.2 The deemed cost exemption

7.3.3 Disclosures related to severe hyperinflation

8 Translation to a Different Presentation Currency

9 Disclosures ...

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