Читать книгу International Taxation - Adnan Islam - Страница 79

A QBU must adopt the U.S. dollar approximate separate transactions method (DASTM) if its functional currency would otherwise be a hyperinflationary currency (for example, Venezuela at times), that is, a currency in which cumulative inflation was at least 100% over the 36-month period immediately preceding the tax year. Cumulative inflation is determined with compounding. If inflation in a particular currency over the relevant 36-month period is 29%, 25%, and 30%, the cumulative rate of inflation is 109.6% (129% of 125% of 130%, less 100%), not 84% (sum of 29, 25, and 30). The inflation rate is based on the consumer price index for the country issuing the currency, as given in International Financial Statistics (a publication of the International Monetary Fund).