Hyperinflation is defined as an exceptional circumstance by the IASB. All non–monetary items – variable and constant items – in Historical Cost or Current Costs period-end financial statements are required to be restated in terms of IAS 29 Financial Reporting in Hyperinflationary Economies during hyperinflation by applying the period–end CPI to make the restated HC or CC financial reports more useful. This normally does nothing to the real values of the restated non–monetary items unless they are accepted by the tax authorities as the new real values for these companies.
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