AASB issues amendments for entities with a hyperinflationary presentation currency

Friday, December 12, 2025

AASB 2025-4 amends AASB 121 to clarify the translation procedures for an entity whose presentation currency is that of a hyperinflationary economy. 

AASB 2025-4 Amendments to Australian Accounting Standards – Translation to a Hyperinflationary Presentation Currency is available on the AASB Pronouncements Web Portal.   

The Standard amends the foreign currency translation requirements set out in AASB 121 The Effects of Changes in Foreign Exchange Rates. The amended translation procedures apply when:  

• the entity’s functional currency is that of a non-hyperinflationary economy and it is translating its results and financial position into the currency of a hyperinflationary economy; and  

• the entity is translating into the currency of a hyperinflationary economy the results and financial position of a foreign operation whose functional currency is that of a non-hyperinflationary economy.   

The amendments also address the effect of the entity’s presentation currency ceasing to be the currency of a hyperinflationary economy.  

AASB 2025-4 applies to annual periods beginning on or after 1 January 2027. Earlier application is permitted