It is common knowledge in the accounting world that all companies reporting in the currency of the same hyperinflationary economy apply international standards to their financial statements from the beginning of the accounting period in which the existence of hyperinflation in the reporting currency is identified.
In a hyperinflationary economy, financial statements, whether prepared on a historical cost basis or on a current cost basis, are only useful if they are expressed in terms of units of measurement current at the balance sheet date.
The principal financial statements of companies that prepare and present them in the currency of a hyperinflationary economy. Presentation of the information required by this Pronouncement as a supplement to the unrestated financial statements is not permitted. Moreover, separate presentation of financial statements prior to restatement is discouraged.
The financial statements of any company reporting in the currency of a hyperinflationary economy should be stated in terms of the measuring unit current at the balance sheet date, whether prepared using the historical cost method or the current cost method.
Comparative figures for the previous period, as required by international accounting standards, as well as any other information relating to previous periods, should also be stated in terms of the measuring unit current at the balance sheet date.
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