Pages

Monday, 13 May 2013

Capital Maintenance in Units of Constant Purchasing Power is the only accounting model specifically prescribed in IFRS


Capital Maintenance in Units of Constant Purchasing Power is implied during hyperinflation in terms of IAS 29. Capital Maintenance in Units of Constant Purchasing Power, i.e., restatement required in IAS 29, is the only accounting model specifically prescribed in IFRS.

 ‘At the present time, it is not the intention of the Board to prescribe a particular model other than in exceptional circumstances, such as for those entities reporting in the currency of a hyperinflationary economy.’

Conceptual Framework (2010), Par. 4.65

Nicolaas Smith

Copyright (c) 2005-2013 Nicolaas J Smith. All rights reserved. No reproduction without permission.

No comments:

Post a Comment