Accounting Board Revamps Standard for Hyperinflation-Hit Deals

Global standard-setters changed the accounting rules for companies recording business deals in hyperinflationary economies, offering a quick fix Thursday while considering a wider rewrite.

Companies are now required to record deals at their value on the date the accounts close, rather than when the deal occurred, according to the update from the International Accounting Standards Board.

Sharp changes to exchange rates amid high inflation in countries such as Venezuela and Zimbabwe make it hard to compare values over the year. The accounting standard change is intended to make it easier to understand a company’s financial results.

• “Developed in response to ...