IASB: Amendments to IAS 21 for translating financial information into hyperinflationary currencies

IASB: Amendments to IAS 21 for translating financial information into hyperinflationary currencies

• 27 November 2025
• Accounting
• South African Accounting Academy

Summary:

The International Accounting Standards Board (IASB) has issued amendments to IAS 21 that clarify how companies should translate financial statements from a non-hyperinflationary currency into a hyperinflationary one.

Article:

These amendments to IAS 21 (the Effects of Changes in Foreign Exchange Rates) focus on Translation to a Hyperinflationary Presentation Currency.

These narrow-scope amendments aim to improve the usefulness of the resulting information in a cost-effective manner. Developed in response to stakeholder feedback, these amendments are expected to reduce diversity in practice and provide a clearer basis for reporting in a hyperinflationary currency.

The amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates are effective for annual periods beginning on or after 1 January 2027. Companies can choose to apply them earlier.

Click here to download the 22-page document:

https://www.ifrs.org/bin/oauth-redirect.html/content/dam/ifrs/publications/amendments/english/2025/iasb-2025-2-thpc-ias-21.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• As an auditor and independent reviewer, you need to consider your clients’ compliance with accounting standards.
• As an accountant and compiler of financial statements, you need to consider amendments to standards that are issued by the standard-setting bodies, e.g. IASB, IAASB, etc.

Relevance to Your clients:

• An entity compiling filing financials need to consider amendments to standards that are issued by the standard-setting bodies, e.g. IASB, IAASB, etc.

0 COMMENTS

LEAVE A COMMENT