ACCA welcomes the opportunity to provide views in response to the IASB’s exposure draft (ED) for Translation to a Hyperinflationary Presentation Currency.
Our response has been developed with the assistance of ACCA’s Global Forum for Corporate Reporting.
Our general comments on the proposed amendments are as follows:
The proposed amendments would potentially improve the usefulness of financial statements presented in the currency of a hyperinflationary economy and simplify the accounting treatment for affected entities by requiring a consistent translation method to all amounts that are subject to translation, thereby removing diversity in practice and improving comparability.
However, we have reservations about duplicating the disclosure of summarised financial information of an entity’s foreign operations.
Our detailed responses to the specific questions asked include suggestions for further clarifications and considerations that would improve the understandability of the amended requirements.
To see the response in full, please download the consultation response document on this page.