IAS 29 addresses financial reporting in hyperinflationary economies. While, in general, this applies the same principles as are employed when using general price level accounting, the objective is to convert the financial statements of entities operating under conditions that render unadjusted financial statements of little or no value into meaningful measures of financial position and performance.
|Sources of IFRS|
|IAS 29||IFRS 1||IFRIC 7|
FINANCIAL REPORTING IN HYPERINFLATIONARY ECONOMIES
Hyperinflation is a condition that is difficult to define precisely, as there is not a clear demarcation between merely rampant inflation and true hyperinflation. However, in any given economic system, when the general population has lost faith in the stability of the local economy, and business transactions are commonly either denominated in a stable reference currency of another country, or are structured to incorporate an indexing feature intended ...