Financial Reporting Alert 10-1, Venezuela’s Currency Exchange Controls and Highly Inflationary Status
January 19, 2010
This Financial Reporting Alert highlights foreign currency exchange controls in Venezuela and recent developments related to the classification of Venezuela’s economy as highly inflationary. It also discusses issues that have arisen as a result of Venezuela becoming a highly inflationary economy as well as the recent devaluation of Venezuela’s local currency. Entities with operations in Venezuela should be aware that these issues could affect their consolidated financial statements as of December 31, 2009. This alert will be updated in the future to reflect new developments as warranted.