In a hyperinflationary economy, financial statements, whether prepared on a historical cost basis or on a current cost basis, are only useful if they are expressed in terms of units of measurement current at the balance sheet date.
It is therefore applicable to the principal financial statements of companies that prepare and present them in the currency of a hyperinflationary economy. Presentation of the information required by this pronouncement as a supplement to the financial statements without restatement is not permitted.
Moreover, the separate presentation of financial statements prior to their restatement is discouraged, for that reason it is preferable that all companies reporting in the currency of the same hyperinflationary economy apply the standards from the same date. However, the standards are applicable to the financial statements of any company from the beginning of the accounting period in which the existence of hyperinflation is identified in the country in whose currency the information is presented.
The financial statements of any company reporting in the currency of a hyperinflationary economy should be stated in terms of the measuring unit current at the balance sheet date, whether prepared using the historical cost method or the current cost method.
Comparative figures for the previous period, required as presentation of financial statements, or any other information referring to other preceding periods, should also be stated in terms of the measuring unit current at the balance sheet date.
Transformational leadership and contextual performance
are the main factors that most influence organizational culture.
