ICAEW.com works better with JavaScript enabled.

IFRIC 7 Applying the Restatement Approach under IAS 29

Published November 2005. Effective 1 March 2006.

Become a Financial Reporting Faculty member

Find out more about the benefits of membership and joining details.

Join now

Contents

Free to view

Financial Reporting Faculty members only

Synopsis

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:

  1. 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
  2. restated for the change in the measuring unit between the start of the period and reporting date.

The International Accounting Standards Board (IASB) provides free access to the consolidated unaccompanied international accounting standards for the current year through its website. Free registration is required.

Which version of the interpretation?

Financial Reporting Faculty members who joined the faculty prior to 1 November 2022 have premium access to the consolidated edition of IFRS and amendments through the IASB's IFRS Standards Navigator service. Please log into IFRS Standards Navigator to access electronic versions of the standards through these links.

Please be aware that as part of the changes to ICAEW faculty membership, this service will be withdrawn after 31 December 2022.

IFRSs Referred to by IFRIC 7

This page was last updated 4 February 2022.

How standards trackers work

Financial Reporting Faculty members get full access. Login to get the version of the standard relevant to specific time periods via IFRS Standards Navigator.

ICAEW members and non-members can view a brief synopsis, amendments and details of current proposals.