IAS 21Chapter 11Lesson 1
Hyperinflation: restate, then translate
Step 1 of 4Learning objectives
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For an operation whose functional currency is that of a hyperinflationary economy, one first restates under IAS 29 then translates all amounts at the latest closing rate.
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Learning objectives
- Place the sequence restatement then translation.
- Apply the latest closing rate to the restated amounts.
- Deal with translation differences accumulated before the hyperinflation period.