Interim Financial Reporting in HyperinflInterim Financial Reporting in Hyperinflationary Economies

Interim Financial Reporting in Hyperinflationary Economies

B32 Interim financial reports in hyperinflationary economies are prepared by the same principles as at the end of an annual reporting period.

B33 AASB 129 Financial Reporting in Hyperinflationary Economies requires that the financial statements of an entity that reports in the currency of a hyperinflationary economy be stated in terms of the measuring unit current at the end of the reporting period, and the gain or loss on the net monetary position is included in net income. Also, comparative financial data reported for prior periods are restated to the current measuring unit.

B34 Entities follow those same principles at interim dates, thereby presenting all interim data in the measuring unit as of the end of the interim period, with the resulting gain or loss on the net monetary position included in the interim period’s net income. Entities do not annualise the recognition of the gain or loss. Nor do they use an estimated annual inflation rate in preparing an interim financial report in a hyperinflationary economy.