Hyperinflationary economies - updated IPTF watch list available
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.
