Correct me if I’m wrong…if local currency not equal functional currency, then under U.S. GAAP, translate using temporal, with or without hyperinflation. Under IFRS, reinstate if there is hyperinflation, then do the check for local=functional or not. No?
Restate then use current rate under IFRS. US GAAP does not require restatement for inflation.
The way I am reading this is that for U.S., if local currency equals functional currency, you don’t do current rate method (do temporal), if there is hyperinflation. Is this correct? Normally, you would translate using current rate if local currency equals functional currency.
If LC = FC this is usually because the Co. operates independent. In this case, use current rate method to translate. If in hyperinflation, restate for inflation, then translate using current rate according to IFRS. If LC doesn’t equal FC. FC = PC, restatement using temporal method. If in hyperinfaltion, US GAAP requires restatment using temporal method. No mention of restatement for inflation first. Correct me if I am wrong but that’s what I remember. At work with no notes handy.