LATEST UPDATE

IASB Issues Amendments for Translating Financial Information into Hyperinflationary Currencies

The International Accounting Standards Board (IASB) has issued amendments to clarify how companies should translate financial statements from a non-hyperinflationary currency into a hyperinflationary one.

These narrow-scope amendments aim to improve the usefulness of the resulting information in a cost-effective manner. Developed in response to stakeholder feedback, these amendments are expected to reduce diversity in practice and provide a clearer basis for reporting in a hyperinflationary currency.

The amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates are effective for annual periods beginning on or after 1 January 2027. Companies can choose to apply them earlier.

IFRS Digital subscribers may access Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21) via the IFRS Standards Navigator, on https://www.ifrs.org/issued-standards/list-of-standards/.

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