Translation to a Hyperinflationary Presentation Currency (Amendments to NZ IAS 21)
Translation to a Hyperinflationary Presentation Currency is an amending standard that updates NZ IAS 21.
It is a targeted and narrow scope amending standard that addresses application issues when an entity translates amounts from a functional currency that is the currency of a non-hyperinflationary economy to a presentation currency that is the currency of a hyperinflationary economy.
The amendments introduce a requirement for entities to translate all amounts, including comparatives, using the closing rate at the most recent reporting date. However, consolidated foreign operations must instead translate comparative information using a general price index.
The amending standard also adds new disclosure requirements, including stating the use of the closing rate, providing summarised financial information for affected foreign operations, and disclosing when an entity’s presentation currency is no longer hyperinflationary.
Commencement and application
Application of the amendments to XRB A1 is required for accounting periods beginning on or after 1 January 2027.
Application is permitted for accounting periods that begin before 1 January 2027 but have not ended or do not end before 17 July 2026.
Amendments