U.S. GAAP requires a foreign operation located in a highly inflationary economy to be treated as a U.S. dollar functional currency operation. The temporal method must be used for translation purposes, and the foreign currency financial statements are not restated for inflation. The procedures required by IAS 29 for the restatement of financial statements prior to translation are summarized as follows: Balance Sheet, Income Statement. In addition, IAS 29 requires use of a general price index to restate financial statement balances and inclusion of a purchasing power gain or loss in net income.

Trading Economics website: https://tradingeconomics.com/country-list/inflation-rate).

Requirements:

Using the Trading Economics website above to research your assigned country by teaching faculty and provide in-depth analysis for the following questions:

1. What are the 5 main causes of hyperinflation?
2. What did the government do to reduce the inflation?
3. From your research, do you think your assigned country will be able to get out of the inflation?