Good day, I know all the critera and standrds of IAS29 and what should be restated and what should not be restated. But there are some elements that I cant find anywhere on the web with regard to below scenario.
Lets say I have a business in South Sudan which has a hyperinflation currency.
In year 1 all business activities of company was done in South Sudanese Pounds (SSP) but in October 2011 we went to market and baught USD10m and kept it in the bank. . During first couple of months for 2012 inflation was quite stable but during Q3 inflation increased by another 600% which allows for hyperinflation accounting to be implemented on current year PnL and prior year retained earnings (non monetary items).
The questions is, will hyperinflation only be calculated on the assets,retained earnings and PnL that are in SSP, but how should the USD cash asset be treated. My gut tells me NO as USD didnt depreciate or appreciate, its only the SSP that moved substantially, thus all SSP assets and PnL should be restated andnot USD.
Could someone tell me what the correct treatment for this.