Hyperinflationary economies - updated CAQ watch list available
Jun 23, 2023
On June 23, 2023, the International Practices Task Force (IPTF) of the Center for Audit Quality (CAQ) has issued a discussion document, Monitoring Inflation in Certain Countries. The discussion document addresses the IPTF’s “framework for compiling inflation data to assist registrants in monitoring inflation statistics in connection with their determination of the inflationary status of countries in which they have operations.” The document notes that Argentina, Ethiopia, Haiti, Iran, Lebanon, South Sudan, Sudan, Suriname, Turkey, Venezuela, and Zimbabwe have three-year cumulative inflation rates exceeding 100 percent.
While it monitors the status of highly inflationary countries for the purposes of applying US GAAP, its criteria for identifying such countries are similar to those for identifying “hyperinflationary economies” under IAS 29.
Review the discussion document on the CAQ Website.