Hyperinflation Translation Losses

In a hyperinflationary economy, translation under the all-current method will most likely result in relatively: A) high balance sheet values for long term assets. B) low balance sheet values for long term liabilities. C) high translation gains. . . . . . . . . . . . Answer is B with the following explanation: “In a hyperinflationary economy, translation under the all-current method will most likely result in relatively low balance sheet values for assets and liabilities. Translation losses will also occur.” Can anyone explain? Since you’re translatio at the current rate, at an inflated price, I thought that would create HIGH balance sheet values?

inflation is super high. so if you had a historical asset with 10000$ - it might be worth 1$ because of the high inflation. same with the liability as well. It was worth 10000$ before - now is 1$, That is the hyperinflation taking its toll, when you use the current rate method.

Am I right making the following connection then: Since inflation is high in Currency A, it is extremely depreciated relative to Currency B, and therefore that’s why the translated value is so low? As always, appreciate your help, cpk.