IASB publishes Exposure Draft Translation to a Hyperinflationary Presentation Currency
IASB publishes Exposure Draft Translation to a Hyperinflationary Presentation Currency
The IASB has issued Exposure Draft Translation to a Hyperinflationary Presentation Currency, which proposes narrow-scope amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates.
The proposed amendments would require an entity, whose presentation currency is the currency of a hyperinflationary economy but its functional currency is the currency of a non-hyperinflationary economy, to translate the results and financial position into the presentation currency by translating all amounts at the closing rate at the date of the most recent statement of financial position.
The Exposure Draft also proposes additional disclosure requirements.
The Exposure Draft is open for comments for until 22 November 2024 and may be accessed here.
The proposed amendments would require an entity, whose presentation currency is the currency of a hyperinflationary economy but its functional currency is the currency of a non-hyperinflationary economy, to translate the results and financial position into the presentation currency by translating all amounts at the closing rate at the date of the most recent statement of financial position.
The Exposure Draft also proposes additional disclosure requirements.
The Exposure Draft is open for comments for until 22 November 2024 and may be accessed here.