CERTYNEX IFRS ACADEMY

The Tolbec group translates into euros the statements of its subsidiary whose functional currency is that of a hyperinflationary economy, without prior restatement, at the closing rate. Its note states: "Restatement under IAS 29 is not needed before translation." What is the error?

The statements must be translated first, then restated under IAS 29 in the presentation currency.

The statements must first be restated under IAS 29, then translated at the most recent closing rate.

The statements must be translated at the average rate, restatement then being pointless.

The statements must be restated under IAS 29, then translated at the average rate for the year.