IBERSOL | 2019 Annual Report

Consolidated Financial Statements the date of its establishment if later. c) Statement of income and other comprehensive income i) Statement of other comprehensive income: restatement of Other comprehen- sive income items by applying the change in the general price index from the dates on which the items of income and expenses were initially recorded in the financial statements. ii) Income statement: restatement of the items of income for the year, by applying the change in the general price index from the dates on which the items of in- come and expenses were initially recorded in the financial statements. iii) Other items of income or expenditure, such as income and interest expense and exchange rate differences relating to funds invested or borrowed, are also restated, although they partially “offset” the effect of inflation. iv) The determination of the inflation index to be applied taking into account the registration date of each transaction may require a very significant level of in- formation disaggregation, allowing the use of monthly averages as an approxi- mation of the inflation rate to be applied for each transaction. d) Reconciliation of gains / losses on restatement by hyperinflation Deferred taxes are recognized on the adjustments resulting from the restatement of non-monetary items. 232