While the use of fair value as a measurement attribute for purposes of financial statement presentation has become increasingly popular in recent years, accounting principles still remain substantially grounded in historical costing. In times of price instability–or, in the case of long-lived assets, even in periods of modest changes in prices over long stretches of time–financial reporting can be distorted. IAS 29 addresses financial reporting in hyperinflationary economies. Over recent years there have been very few nations suffering from hyperinflation, but as with more moderate inflationary cycles, these have hardly disappeared from the economic horizon, and of course the possibility for renewed inflation in the future remains. Financial statements that ignore the effects of general price level changes as well as changes in specific prices are inadequate. Replacement cost information will assist in computing current period earnings on a true economic basis.