Cost is then subject to depreciation with to write off cost of the asset over its estimated useful life down to the recoverable amount

ASSET AND LIABILITIES IN DOMINATED CORRENT
Monetary items such as cost balance receivable and payable which are dominated in foreign currency using the closing exchange rate under IFRS.

EXCEPTION TO THE HISTORICAL COST BASIS OF ACCOUNT
REVALUATION OF PROPERTY PLANT EQUIPMENT
Under IFRS it is acceptable, but not required to restate the values of property, plant and equipment to a fair value; fair value is the amount for which an asset could be exchanged or a liability settled between knowledgeable, willing partners in an arm’s length transaction. Such a policy must be applied to all asset of a particular class. It would therefore be acceptable for an entity to revolve free hold properties every three (3) years. The revaluation must be made with sufficient regularity to ensure that the carrying value does not differ materially from market value in subsequent years. A surplus on revaluation would be recovered as a reserve movement not as income.

DERIVATIVE FINANCIAL INSTRUMENT
Under IFRS and US GAAP derivative financial instruments are stated at fair value (mark to market) with movement recorded in the income statement.

FINANCIAL REPORTING IN HYPER INFLATIONARY ECONOMIES
IFRS requests a separate method of accounting in currencies deemed to be hyper inflationary. The characteristics of a hyper inflation include the population keeping it wealth in non-monetary assets or relatively stable foreign currency; prices quoted in foreign currency or wide spread of indexation of prices. This might arise if cumulative inflation reaches or exceeds 100% over 3 years. An entity operating in a hyperinflationary economy will either:
A) Records a gain or loss on its “net monetary position” in its income statement
b) Record