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Link with IAS 29
Learning objectives
- Explain how restatement under IAS 29 and translation under this Standard fit together.L3, L4
Normative references
- IAS 21 §14If the functional currency is the currency of a hyperinflationary economy, the financial statements are restated in accordance with IAS 29; the entity cannot avoid restatement by adopting a functional currency other than the one determined in accordance with IAS 21 (for example, that of its parent).
- IAS 21 §42Functional currency of a hyperinflationary economy and a different presentation currency: (a) all amounts (assets, liabilities, equity items, income and expenses, including comparatives) are translated at the closing rate at the date of the most recent statement of financial position; (b) however, when amounts are translated into the currency of a non-hyperinflationary economy, comparative amounts are those presented as current year amounts in the relevant prior year financial statements, not adjusted for subsequent changes in the price level or in exchange rates. Introductory sentence amended by the November 2025 amendment (para. 60O, future requirement).
- IAS 21 §43An entity whose functional currency is the currency of a hyperinflationary economy restates its financial statements in accordance with IAS 29 before applying the translation method in para. 42, except for comparative amounts translated into the currency of a non-hyperinflationary economy (para. 42(b)); when the economy ceases to be hyperinflationary, the amounts restated to the price level at the date the entity ceased restating are used as the historical costs for translation into the presentation currency.
Original summaries of the paragraphs (reference register), never a quotation of the standard.
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