07 October 2024

How to account for hyperinflation

Multiple-choice questions. In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please reread the article before attempting the questions again.

  1. Who has issued the exposure draft on translation to a hyperinflationary economy?

  2. The principles of accounting for hyperinflation are covered under what standard?

  3. Which, if any, of the following statements are true? Statement 1, the exposure draft will lead to a new IFRS accounting standard, or statement 2, the exposure draft will result in changes to IAS 29

  4. How many economies are currently identified as hyperinflationary by the IMF?

  5. Which of the following economies is expected to become hyperinflationary in 2024?

  6. What is the next stage in the hyper-inflationary discussion?

  7. What is the proposed change to IAS 21 in relation to the hyperinflationary discussion?

  8. Which of these statements is true? Statement 1, the exposure draft recommends that foreign operations being translated into a hyperinflationary currency should be translated at closing rates, or statement 2, the exposure draft recommends that comparatives and statement of profit or loss figures are restated at closing rates.

  9. When are comments on the exposure draft open until?

  10. Which, if any, of the following statements is correct regarding a recent committee decision? Statement 1, Pakistan has been identified as a country to monitor for hyperinflation by the IMF, or statement 2, the proposal allows the use of a general price index.

1 Unit