PAS 29

25問 • 10ヶ月前

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It prescribes the restatement procedures for the financial statements of an entity whose functional currency is the currency of a hyperinflationary economy.

PAS 29

It is normally ignored in accounting due to the stable monetary unit assumption.

inflation

Why inflation is cannot be ignored if it becomes very high

This is because financial statements are stated in terms of money and when money loses its purchasing power at a very high rate, the financial statements become misleading.

If theeres a hyperinflation then the financial statements become misleading. The financial statements therefore must be

restated

It refers to a general increase in prices and decrease in the purchasing power of money.

inflation

PAS 29 is a matter of?

judgement

The financial statements of an entity that reports in the currency of a hyperinflationary economy, whether they are based on historical cost or current cost, shall be stated in terms of

the measuring unit curent at the end of the reporting period.

The PAS 29 discourage or not prescribe the following except one

PAS 29 discourages the uses of stable monetary unit principle

Financial statements are restated by applying

general price index

The corresponding figures for prior period(s), whether monetary or nonmonetary, are all

restated

The gain or loss on the net monetary position resulting from the restatements is recognized in

profit or loss

If any of the entities belonging to a group entity reports in a hyperinflationary economy,

the financial statements of that entity needs to be restated first before they are consolidated in the group's financial statements

If a foreign operation reports in a hyperinflationary economy,

its financial statements are also restated first under PAS 29 before they are translated in accordance with PAS 21.

What does PAS 29 prescribe for the financial statements of an entity in a hyperinflationary economy?

restatement procedures

How does PAS 29 define hyperinflation?

based on the specific indicators

What does PAS 29 require for the presentation of financial information in hyperinflationary economies?

No separate presentation before restatement

How are monetary items treated in the Statement of Financial Position under PAS 29?

not restated

What is the formula for restatement of historical cost under PAS 29?

Historical Cost x Current price index / Historical price index

What does PAS 29 require in terms of disclosure for financial statements in hyperinflationary economies?

Restatement fact, basis of financial statements, and price index details

How are items measured at fair value or NRV treated in the Statement of Financial Position under PAS 29?

Not restated, except if determined at a different date

What does PAS 29 discourage regarding the presentation of financial statements in hyperinflationary economies?

Separate presentation before restatement

How does PAS 29 suggest determining the existence of hyperinflation in an economy?

Based on specific indicators like currency preference and price quoting

What is the treatment of the gain or loss on the net monetary position resulting from restatements under PAS 29?

Recognized in profit or loss

PAS 29 is generally not applied by entities unless their functional currency is that of a hyperinflationary economy. This is because of which of the following basic accounting concepts?

stable monetary unit assumption

According to PAS 29, which of the following are restated in case an entity's functional currency is that of a hyperinflationary economy?

non monetary items

Cfas (overview of accounting)

ユーザ名非公開 · 75問 · 11ヶ月前

Cfas (overview of accounting)