IFRIC 7 Applying the Restatement Approach under IAS 29
Published November 2005. Effective 1 March 2006.
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IFRIC 7 provides guidance on the application of IAS 29 in the first year in which hyperinflation is identified.
The interpretation requires that in the first period in which hyperinflation is identified, IAS 29 is applied as if the economy has always been hyperinflationary. Therefore non-monetary assets held at historical cost are restated to reflect inflation since acquisition and those held at a revalued amount are restated to reflect inflation since valuation.
It also requires that deferred tax balances in the opening statement of financial position (balance sheet) are:
- re-measured in accordance with IAS 12 after non- monetary items at the date of the opening statement of financial position have been restated, and then
- restated for the change in the measuring unit between the start of the period and reporting date.
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IFRSs Referred to by IFRIC 7
This page was last updated 4 February 2022.
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