It was reported8 that 'Belarus’ cumulative inflation index will exceed 100%, which means that IAS 29 is likely to be applicable to Belarus up to 2014 ... does not expect any significant micro- economic consequences of Belarus’ qualifying as a country with hyperinflationary economy, except for the significant deterioration in financial performance indicators of banks and enterprises applying IFRS.’

Discuss what financial performance indicators might be adversely affected by applying IAS 29.

(appendix)