(IFRS) for Small and Medium-sized Entities (SMEs)

IFRS FOR SMES – JULY 2009Statement of cash flows31.12 An entity shall express all items in the statement of cash flows in terms of themeasuring unit current at the end of the reporting period.Gain or loss on net monetary position31.13 In a period of inflation, an entity holding an excess of monetary assets overmonetary liabilities loses purchasing power, and an entity with an excess ofmonetary liabilities over monetary assets gains purchasing power, to the extentthe assets and liabilities are not linked to a price level. An entity shall include inprofit or loss the gain or loss on the net monetary position. An entity shall offsetthe adjustment to those assets and liabilities linked by agreement to changes inprices made in accordance with paragraph 31.7 against the gain or loss on netmonetary position.Economies ceasing to be hyperinflationary31.14 When an economy ceases to be hyperinflationary and an entity discontinues thepreparation and presentation of financial statements prepared in accordancewith this section, it shall treat the amounts expressed in the presentationcurrency at the end of the previous reporting period as the basis for the carryingamounts in its subsequent financial statements.Disclosures31.15 An entity to which this section applies shall disclose the following:(a)(b)(c)the fact that financial statements and other prior period data have beenrestated for changes in the general purchasing power of the functionalcurrency.the identity and level of the price index at the reporting date and changesduring the current reporting period and the previous reporting period.amount of gain or loss on monetary items.192 © IASCF