UITF Abstract 9 Accounting for Operations in Hyper-inflationary Economies
Issued June 1993. Effective accounting periods ending on or after 23 August 1993. For companies complying with FRS 24, UITF 9 is now superseded. It remains in force for other companies.
UITF Abstract 9 has been superseded by FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for accounting periods beginning on or after 1 January 2015. For more information visit:
Synopsis
Adjustments must be made where the distortions caused by hyper-inflation are such as to affect the true and fair view. This will definitely be the case if cumulative inflation over three years is around 100%.
Two methods of adjustment are suggested:
- Adjust local currency financial statements to reflect current price levels before translation
- Use a relatively stable currency as the functional currency of the foreign operations
Last updated 21 June 2015
