The European Commission has adopted amendments to three international accounting standards, requiring companies to apply new rules for translating financial statements from non-hyperinflationary currencies into hyperinflationary ones by financial years starting on or after 1 January 2027. The changes, published in a Commission Regulation on 24 July 2026, affect all entities applying EU-endorsed International Accounting Standards.
The amendments originate from the International Accounting Standards Board, which issued changes to IAS 21 on 13 November 2025. The Commission concluded, after consulting the European Financial Reporting Advisory Group (EFRAG), that the amendments meet the conditions for adoption under Article 3(2) of Regulation (EC) No 1606/2002. Adopting the IAS 21 changes also required consequential amendments to IFRS 19 (Subsidiaries without Public Accountability: Disclosures) and IAS 29 (Financial Reporting in Hyperinflationary Economies).
The regulation enters into force on the twentieth day after its publication in the Official Journal of the European Union. Companies must apply the amendments at the latest from the commencement date of their first financial year starting on or after 1 January 2027. The new rules aim to improve comparability and transparency of financial statements in hyperinflationary contexts.
EU-listed companies with operations in hyperinflationary economies will need to adjust their accounting processes, potentially increasing compliance costs. Investors and analysts benefit from more consistent and comparable financial reporting. National enforcers and auditors face the task of ensuring timely adoption. Subsidiaries without public accountability applying IFRS 19 will have to align their disclosure requirements with the amended standards.