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Hyperinflationary economies - updated IPTF watch list available

  • CAQ Image

Jan 06, 2021

IAS 29 'Financial Reporting in Hy­per­in­fla­tion­ary Economies' defines and provides general guidance for assessing whether a par­tic­u­lar ju­ris­dic­tion's economy is hy­per­in­fla­tion­ary. But the IASB does not identify specific ju­ris­dic­tions. The International Practices Task Force (IPTF) of the Centre for Audit Quality (CAQ) monitors the status of 'highly in­fla­tion­ary' countries. The Task Force's criteria for iden­ti­fy­ing such countries are similar to those for iden­ti­fy­ing 'hy­per­in­fla­tion­ary economies' under IAS 29.

The IPTF's dis­cus­sion document for the November 10, 2020 meeting is now available and states the following view of the Task Force:

 Countries with three-year cu­mu­la­tive inflation rates exceeding 100%:

  • Argentina
  • Iran
  • Lebanon
  • South Sudan
  • Sudan
  • Venezuela
  • Zimbabwe

Countries with projected three-year cu­mu­la­tive inflation rates exceeding 100%:

  • Suriname

Countries where the three-year cu­mu­la­tive inflation rates had exceeded 100% in recent years:

There are no countries in this category for this period.

Countries with recent three-year cu­mu­la­tive inflation rates exceeding 100% after a spike in inflation in a discrete period:

There are no countries in this category for this period.

Countries with projected three-year cu­mu­la­tive inflation rates between 70% and 100% or with a sig­nif­i­cant (25% or more) increase in inflation during the current period

  • Angola
  • Haiti
  • Liberia
  • Yemen

The IPTF also notes that there may be ad­di­tional countries with three-year cu­mu­la­tive inflation rates exceeding 100% or that should be monitored which are not included in the analysis as the necessary data is not available. An example cited is Syria.

The full list, including exact numbers, detailed ex­pla­na­tions of the cal­cu­la­tion of the numbers, and ob­ser­va­tions of the Task Force is available on the CAQ website. Deloitte Global also offers the overview of the IPTF's as­sess­ment of hy­per­in­fla­tion­ary ju­ris­dic­tions at the end of our summary of IAS 29.

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