Defining Issues  |  July 2018

Financial reporting considerations for companies with operations in Argentina

KPMG reports on Argentina’s classification as having a highly inflationary economy and explains what actions companies need to take. KPMG expects calendar year-end companies to conclude that Argentina’s economy is highly inflationary no later than June 30, 2018.

Applicability

  • All companies with significant operations in Argentina.

Relevant dates

  • Effective immediately.

Key impacts

  • For a company that reports on a calendar year-end basis, we expect it to conclude that Argentina’s economy is highly inflationary no later than the quarter ended
    June 30, 2018
  • ASC Topic 830 requires that those companies apply the accounting guidance for highly inflationary economies during their fiscal quarter beginning July 1, 2018