Hyperinflationary countries – Reminder of IAS 29 implications

The Grant Thornton International IFRS team has published Hyperinflationary countries, a reminder of the accounting implications of applying IAS 29 Financial Reporting in Hyperinflationary Economies.

IAS 29 requires the financial statements of any entity whose functional currency is that of a hyperinflationary economy to be restated for changes in the general purchasing power of that currency, so that the financial information provided is more meaningful. The Standard lists factors that indicate an economy is hyperinflationary.

In addition to providing a reminder of the accounting implications of applying IAS 29, the publication Hyperinflationary countries provides Grant Thornton International’s view that, until further notice, IAS 29 should be applied by entities whose functional currency is that of the following countries:

Entities whose functional currency is that of Iran and Lebanon should be applying IAS 29 for the first time in 2020.