Accounting Standard AASB 2025-4 Amendments to Australian Accounting Standards – Translation to a Hyperinflationary Presentation Currency
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Main features of this Standard
Main requirements
This Standard amends AASB 121 and AASB 129 to clarify the translation procedures for an entity whose presentation currency is that of a hyperinflationary economy, in the following circumstances:
(a) the entity’s functional currency is that of a non-hyperinflationary economy and it is translating its results and financial position into the currency of a hyperinflationary economy; and
(b) the entity is translating into the currency of a hyperinflationary economy the results and financial position of a foreign operation whose functional currency is that of a non-hyperinflationary economy.
The amendments include the translation procedures for comparatives in the entity’s financial statements and also address the effect of the entity’s presentation currency ceasing to be the currency of a hyperinflationary economy.
Application date
This Standard applies to annual periods beginning on or after 1 January 2027. Earlier application is permitted.