According to IAS 29, the Term "Hyper-Inflationary" Means

question 14

Multiple Choice

According to IAS 29, the term "hyper-inflationary" means:

• A) an annual inflation rate of 50%.
• B) an annual inflation rate of 100%.
• C) a cumulative inflation rate of 100% over a 3-5 year period.
• D) it does not establish an absolute rate which is deemed to be hyper-inflation.

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Definitions:

Disposal of Asset

The process of selling, scrapping, or otherwise removing an asset from a company's balance sheet, often due to obsolescence, surplus, or a strategic shift.

Note Payable-State Bank

A debt obligation in the form of a written promissory note made to a state bank, specifying the terms under which repayment will be made.

Collateralized Borrowing

Obtaining a loan by pledging an asset as security for the loan, which the lender can seize if the borrower defaults.

Assets

Resources owned by a company that provide future economic benefits.