The global standard setter has published proposals in an Exposure Draft to address accounting issues that affect companies that translate financial information from a non-hyperinflationary currency to a hyperinflationary currency.

These proposals, which are narrow-scope amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates, introduce translation requirements for these companies.

The International Accounting Standards Board (IASB) expects the proposed translation requirements to improve information for users of financial statements while being simple and cost-effective for companies to apply.