Hyperinflation (IFRS) (Multinational Operation)


Under environment of hyperinflation, in the topic of Multinational Operation and assuming IFRS, foreign currency financial statement are first restated for inflation and then translated using current rate method or current rate?

It is different between CFAI Book and a studying note (provided by a provider with reputation)



Follow the curriculum. They’re the ones who write the exams.

Use the Current rate. in the CFAI Book: Exemple 4, solution 3.

“ the inflation-restated foreign currency financial statements are translated into the parent’s presentation currency using the current exchange rate.”

Excerpt From: CFA Institute. “2020 CFA Program Level II Volume 2 Financial Reporting and Analysis.” Apple Books.