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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:
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.