The IFRIC noted that some may interpret this provision as restricting the

The ifric noted that some may interpret this

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whose currency it reports. The IFRIC noted that some may interpret this provision as restricting the restatement of an entity's  opening balance sheet in the reporting period in which it identifies the existence of hyperinflation.  Consequently, the opening balance sheet should be restated to reflect the change in a general  price index for the reporting period only and not for changes in a general price index before the  beginning of the reporting period, even though some balance sheet items may have been acquired  or assumed before that date. However, the IFRIC also noted that  paragraph 34  of IAS 29 requires: Corresponding figures for the previous reporting period , whether they were based on a  historical cost approach or a current cost approach, are restated by applying a general  price index so that the comparative financial statements are  presented in terms of the  measuring unit current at the end of the reporting period . Information that is disclosed in  respect of earlier periods is also expressed in terms of the measuring unit current at the  end of the reporting period ... [emphasis added] BC7     The IFRIC considered a possible inconsistency between the restriction in  paragraph 4  of IAS 29  and the requirement in paragraph 34. The IFRIC noted that  paragraph 4  is a scope paragraph,  which identifies when an entity has to comply with the Standard. The paragraph clarifies that an  entity applies the requirements of the Standard to its financial statements from the beginning of  the reporting period to the balance sheet date and not only from the date when it identifies the  existence of hyperinflation. However,  paragraph 4  does not deal with the restatement and  presentation of the financial statements (either at the balance sheet date or in relation to the  comparative figures). Hence,  paragraph 4  of IAS 29 does not exclude from the restatement of an  entity's opening balance sheet changes in the general price level before the beginning of the  reporting period in which the entity identifies the existence of hyperinflation. BC8     The IFRIC concluded that, in the context of the purpose of the Standard, the restatement of the  financial statements for the reporting period in which an entity identifies the existence of  hyperinflation should be consistent with the restatement approach applied in subsequent  reporting periods.
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BC9     Some respondents to D5 expressed concerns about whether the restatement approach in  IAS 29   was always practicable for preparers and whether it provided decision–useful information to  users. Though the IFRIC understood those concerns, the IFRIC observed that such concerns 
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  • Spring '13
  • ArmeeJayCresmundo
  • Balance Sheet, Deferred tax, IFRIC

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