Which method most closely represents the requirement of IAS 29 for reporting financial statements of companies in hyperinflationary economies?
A)Current replacement cost.
B)General purchasing power.
C)Historical cost for non-monetary assets and current replacement cost for monetary assets.
D)Companies have a choice between current replacement cost and general purchasing power methods.

Question

Quizplus · Accepted Answer

IAS 29 requires financial statements to be adjusted for changes in the general purchasing power of the currency in hyperinflationary economies, which is represented by the general purchasing power method.

Which Method Most Closely Represents the Requirement of IAS 29