Reformulation of Financial Statements

Financial statements include key documents like the income statement, the statement of shareholders' equity and the balance sheet that provide information on business finances. Companies use these to make many operational decisions, while investors use them to examine businesses and industries from the outside. Reformulation refers to making the financial statements for a particular period, then changing them, reorganizing the items they contain in order to more accurately depict various aspects of the business.


La reexpresión de estados financieros es una técnica especial que se utiliza para tomar en cuenta el impacto que tiene la subida o caída de los costos de los productos sobre las cifras informadas en algunas regiones del mundo por las empresas internacionales.

reexpresión - restatement
References
reexpresión - restatement / Spanish-Engiish Dictionary of Law and Business - Thomas L. West III, first and second editions

reexpresión financiera - restatement / Glosario Internacional para el Traductor - Marina Orellana
reexpresión de estados financieros - restatement of financial statements / Glosario Internacional para el Traductor - Marina Orellana

Definition by Barron's Dictionary of Finance and Investment Terms
Correction of a previously issued financial statement, usually because of an accounting irregularity or misrepresentation.

IAS 29 addresses restatement of financial statements in inflation accounting.

https://www.iasplus.com/en/standards/ias/ias29

Summary of IAS 29
Objective of IAS 29
The objective of IAS 29 is to establish specific standards for entities reporting in the currency of a hyperinflationary economy, so that the financial information provided is meaningful.

Restatement of financial statements
The basic principle in IAS 29 is that the financial statements of an entity that reports in the currency of a hyperinflationary economy should be stated in terms of the measuring unit current at the balance sheet date. Comparative figures for prior period(s) should be restated into the same current measuring unit. [IAS 29.8]

Restatements are made by applying a general price index. Items such as monetary items that are already stated at the measuring unit at the balance sheet date are not restated. Other items are restated based on the change in the general price index between the date those items were acquired or incurred and the balance sheet date.

A gain or loss on the net monetary position is included in net income. It should be disclosed separately. [IAS 29.9]

The restated amount of a non-monetary item is reduced, in accordance with appropriate IFRSs, when it exceeds its the recoverable amount. [IAS 29.19]

The Standard does not establish an absolute rate at which hyperinflation is deemed to arise - but allows judgement as to when restatement of financial statements becomes necessary. Characteristics of the economic environment of a country which indicate the existence of hyperinflation include: [IAS 29.3]

the general population prefers to keep its wealth in non-monetary assets or in a relatively stable foreign currency. Amounts of local currency held are immediately invested to maintain purchasing power; the general population regards monetary amounts not in terms of the local currency but in terms of a relatively stable foreign currency. Prices may be quoted in that currency; sales and purchases on credit take place at prices that compensate for the expected loss of purchasing power during the credit period, even if the period is short; interest rates, wages, and prices are linked to a price index; and the cumulative inflation rate over three years approaches, or exceeds, 100%.
IAS 29 describes characteristics that may indicate that an economy is hyperinflationary. However, it concludes that it is a matter of judgement when restatement of financial statements becomes necessary.

Final comment
Restatements are adjustments for correcting errors, as well as adjustments due to inflation. Financial statements are not reissued as a result of restatement.

Hope this helps.