IFRIC07 BV2009 - IFRIC 7 IFRIC Interpretation 7 Applying...

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IFRIC 7 IFRIC Interpretation 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies This version includes amendments resulting from IFRSs issued up to 31 December 2008. IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies was developed by the International Financial Reporting Interpretations Committee and issued by the International Accounting Standards Board in November 2005. IFRIC 7 and its accompanying documents were amended by IAS 1 Presentation of Financial Statements (as revised in September 2007). 1 1 effective date 1 January 2009 © IASCF 1
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IFRIC 7 C ONTENTS paragraphs IFRIC INTERPRETATION 7 APPLYING THE RESTATEMENT APPROACH UNDER IAS 29 FINANCIAL REPORTING IN HYPERINFLATIONARY ECONOMIES REFERENCES BACKGROUND 1 ISSUES 2 CONSENSUS 3–5 EFFECTIVE DATE 6 ILLUSTRATIVE EXAMPLE BASIS FOR CONCLUSIONS 2 © IASCF
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IFRIC 7 IFRIC Interpretation 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies (IFRIC 7) is set out in paragraphs 1–6. IFRIC 7 is accompanied by an Illustrative Example and a Basis for Conclusions. The scope and authority of Interpretations are set out in paragraphs 2 and 7–17 of the Preface to International Financial Reporting Standards . © IASCF 3
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IFRIC 7 IFRIC Interpretation 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies References IAS 12 Income Taxes IAS 29 Financial Reporting in Hyperinflationary Economies Background 1 This Interpretation provides guidance on how to apply the requirements of IAS 29 in a reporting period in which an entity identifies * the existence of hyperinflation in the economy of its functional currency, when that economy was not hyperinflationary in the prior period, and the entity therefore restates its financial statements in accordance with IAS 29. Issues 2 The questions addressed in this Interpretation are: (a) how should the requirement ‘… stated in terms of the measuring unit current at the end of the reporting period’ in paragraph 8 of IAS 29 be interpreted when an entity applies the Standard? (b) how should an entity account for opening deferred tax items in its restated financial statements? Consensus 3 In the reporting period in which an entity identifies the existence of hyperinflation in the economy of its functional currency, not having been hyperinflationary in the prior period, the entity shall apply the requirements of IAS 29 as if the economy had always been hyperinflationary. Therefore, in relation to non- monetary items measured at historical cost, the entity’s opening statement of financial position at the beginning of the earliest period presented in the financial statements shall be restated to reflect the effect of inflation from the date the assets were acquired and the liabilities were incurred or assumed until the end of the reporting period. For non-monetary items carried in the opening statement of financial position at amounts current at dates
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IFRIC07 BV2009 - IFRIC 7 IFRIC Interpretation 7 Applying...

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