Preface

Standards amended by AASB 2025-4

This Standard makes amendments to AASB 121 The Effects of Changes in Foreign Exchange Rates (August 2015) and AASB 129 Financial Reporting in Hyperinflationary Economies (August 2015).

These amendments arise from the issuance of International Financial Reporting Standard Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21) by the International Accounting Standards Board in November 2025.

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.