The IASB has concluded that reports of monetary position and operating efficience in local currency are not meaningful in a hyperinflationary atmosphere. IAS 29,17 mentioned in conjunction with VESTEL’s inflation-adjusted financial statements of the the restatement of main financial statement facts. Specifically, financial statements of an enterprise that reports in the currency of a hyperinflationary economy, regardless of whether based on a historical or currentcost valuation framework, must be reexpressed in terms of constant purchasing power as of the balance sheet date. This rule also applies to corresponding figures for the preceding period. Purchasing-power gains or losses associated to a net monetary liability or asset position are to be integrated in existing income. Reporting enterprises must also disclose
- The reality that restatement for alterations inside the general purchasing power from the measuring unit has been made
- The asset-valuation framework employed inside the primary statements (i.e., historical or current-cost valuation)
- The identity and degree of the cost index in the balance sheet date, together with its movement through the reporting period four. The net monetary gain or loss throughout the period
