With regards to the owners' equity,at the first application of IAS 29 a general price index should be applied to;

Question

Quizplus · Accepted Answer

When applying IAS 29 for the first time, a general price index should be applied to all elements of the owners' equity except the retained earnings and any revaluation reserves. Retained earnings are excluded because they have already been adjusted for inflation in previous accounting periods, while revaluation reserves are excluded because they have been more recently adjusted to fair value. Share premium accounts are also excluded as they are not subject to inflationary changes. Therefore, the correct choice is C.

With Regards to the Owners' Equity,at the First Application of IAS