Deloitte
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Chapter 9 — Presentation and Disclosure

9.5 Highly Inflationary Economies

9.5 Highly Inflationary Economies

The SEC staff continues to focus on accounting and disclosure considerations related to the foreign currency exchange environment in countries whose economies (1) are highly inflationary or (2) risk becoming highly inflationary. Registrants with material operations in an economy at risk for being highly inflationary are encouraged to closely monitor the economic environment within the country and to ensure that appropriate processes are in place for identifying relevant inflation data. Entities with material operations in economies at risk for being highly inflationary are encouraged to carefully consider the requirements in ASC 275 related to disclosing risks and uncertainties resulting from certain concentrations, including concentrations associated with foreign operations and therefore with exposure to foreign exchange risk.