IAS 29 - Hyperinflationary Economies

According to the IAS 29, hyperinflation could be indicated when the cumulative inflation rate over three years is approaching, or exceeds…

• 100%

• 26%

• 75%

• 50%

The IAS 29 does not establish an absolute rate at which hyperinflation is deemed to arise, therefore it is a matter of judgement when restatement of financial statements becomes necessary.

• TRUE

• FALSE

The gain or loss on the net monetary position shall be included in…

• Profit or loss

• Assets or Liabilities

• Current assets

• Common stock

What choice is recommended to use instead of the general price index when this is not available?

• Exchange rate between the functional currency and a relative stable foreign currency.

• Average increase of the interest rate of the 10-yr US Treasury Bond among the last three years.

• Wait for the price index to be available.

• Use the price index of a relative stable country.

Items stated at current cost are not restated because they are already expressed in terms of the measuring unit current at the end of the reporting period.

• TRUE

• FALSE