• 2023 Issued Standards – IFRIC 7
  The IFRIC Interpretations are available in the 2023 Issued Standards, which include all amendments issued up to and including 1 January 2023.

Registration is required to access the free version of the Issued Standards. This version does not include additional documents that accompany the full standards (such as illustrative examples, implementation guidance and basis for conclusions).

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.