Dataline: Accounting implications of the elimination of the preferential exchange rate in Venezuela (No. 2011-04)

Dataline 01/21/2011 by Assurance services

On December 30, 2010, the government of Venezuela announced that it is eliminating the 2.6 BsF/$ preferential exchange rate. On January 14, 2011, the government of Venezuela published a clarification specifying how the announcement on December 30, 2010 will be administered. The elimination of the preferential exchange rate could affect the rate used for re-measurement of bolivar-denominated transactions, and could affect the accounting for certain bonds issued by the Venezuelan government. This Dataline discusses the accounting implications.