The IASB met in public from 27-29 April 2015 at the IASB offices in London, UK.
One of the topics for discussion was High Inflation.
The IASB discussed high inflation, a project in the research program. The purpose of this project is to consider the requests made by the Federación Argentina de Consejos Profesionales de Ciencias Económicas, the Argentinian standard-setter, and the Group of Latin American Standard Setters (GLASS) to:
- eliminate or reduce the cumulative inflation rate threshold currently included in IAS 29 Financial reporting in Hyperinflationary Economies to identify when hyperinflation exists; and
- to modify the procedures for reporting the adjustments resulting from restating the financial statements.
In addition, the IASB plans to ask its Emerging Economies Group to examine whether there could be merit in developing disclosure requirements for entities in jurisdictions suffering from high inflation."
Not a single IASB board member knows that Brazil implemented financial capital maintenance in units of constant purchasing power as authorized in the Conceptual Framework, Par. 4.59 (a) under the name of "correcção monetária" or monetary correction. Not a single IASB board member even knows of the existence of the Brazilian Unidade Real de Valor (URV) daily index used in 1994. Not a single IASB board member would be able to explain the most basic concepts of financial capital maintenance in units of constant purchasing power originally authorized in IAS 29 in April 1989. The IASB until a year ago stated on the IFRS website that IFRS provide no guidance for financial capital maintenance in units of constant purchasing power. I had to point out to them that the guidance is there in IAS 29 since 1989. For 24 years the IASB did not realize it! How can you expect the current IASB board members to agree to urgent research - as requested by Latin America - when they are completely clueless about financial capital maintenance in units of constant purchasing power even though they have published various of my comment letters regarding the matter over the last few years?
They are ignorant about the subject. Naturally they will reject a request for research.