35 » Hyperinflation
Due to the rapid devaluation of the Argentinian peso, Argentina is considered as hyperinflationary and as a result the application of IAS 29 was adopted for the first time in the third quarter of 2018. The financial statements of 2018 for those subsidiaries that have the Argentinian peso as a functional currency had been restated for the change in the general purchasing power retrospectively since January 1, 2018. The financial statements are based on a historical cost approach. The prior year figures are stated in terms of the measuring unit current at December 31, 2019.
For translation into the presentation currency (euro), all amounts were translated at the closing rate at December 31, 2020. The net assets in the subsidiary’s local financial statements were adjusted for changes in the price level.
The price index at December 31, 2020 was 5,125.55 (2019: 3,767.12).